0:01 hello welcome to World civilizations
0:05 since
0:05 1500 now today we're starting the sixth
0:09 topic of the course which is titled
0:12 modernization in Latin America Russia
0:15 and China so what we're going to be
0:18 doing in this topic is looking at now uh
0:23 profound
0:24 Transformations taking place
0:27 outside of the region where uh initially
0:30 modernization emerged in history which
0:33 was uh Western Europe uh Western Europe
0:37 and uh North America the United States
0:40 um those were the initial regions where
0:43 we see the kind of changes that we
0:45 talked about in the past you know like
0:47 for example the rise of capitalism the
0:50 Industrial Revolution uh the emergence
0:53 of um Democratic political systems uh
0:57 based on representative government for
1:00 example secularism and the like uh so we
1:05 examine those ideas previously u in the
1:08 fourth Topic in the age of revolutions
1:11 and in the fifth topic what we did was
1:13 to look at how during this uh process or
1:19 phenomenon uh known as imperialism or
1:23 colonialism that Europe was embarked
1:26 upon as they were moving into different
1:28 areas of the globe uh the Europeans will
1:31 take some of those ideas of modernity uh
1:35 into different areas you know the areas
1:37 that they um uh penetrated uh with their
1:42 trading companies for example
1:44 establishing a series of colonies in the
1:46 Western Hemisphere and also in other
1:49 parts of the globe like Africa you know
1:52 the Indian subcontinent the Middle East
1:54 and the Far East uh although they were
1:57 embarked upon a process of colonization
1:59 in order to extract uh natural resources
2:02 and labor out of those societies and
2:06 regions they were at the same time
2:08 bringing in uh Western culture Western
2:12 ideas or what is called Western
2:14 Civilization uh some of which again uh
2:17 were based on the ideas of individualism
2:21 and capitalism or capitalist Enterprise
2:24 what is called modernity for example you
2:26 know they were you know introducing
2:28 Educational Systems in order to bring in
2:31 things like science and technology to
2:34 different regions and the like they were
2:36 trying to spread in other words European
2:39 civilization around the world now what
2:42 we're going to be doing here uh in this
2:45 uh
2:46 topic we can just go to our
2:49 outline again this is uh the six topic
2:53 modernization Latin America Russia and
2:55 China what we're going to be doing here
2:58 is now to to look at other regions
3:03 outside of the Homeland so to speak of
3:06 modernity to look how other regions are
3:09 going to uh set themselves on the course
3:13 of
3:15 modernity there will
3:18 be new nations for example uh arising in
3:24 Latin America something that we're going
3:26 to cover particularly in this session as
3:28 we'll see uh that wanted to emulate
3:31 imitate for example the kind of changes
3:34 that were taking place in Western Europe
3:36 and also in North America and they were
3:39 also trying to modernize their societies
3:41 their
3:42 economies uh in Europe itself uh in the
3:46 Eastern section of Europe um we're going
3:49 to see Russia trying to also catch up
3:53 with the West uh although Russia is of
3:57 course part of Europe uh it was really
3:59 Western Europe that modernized initially
4:03 you know countries like Great Britain
4:04 you know uh France Holland Germany for
4:08 example and Russia will also uh try to
4:14 push uh the project of modernity forward
4:20 and we're also going to look at that
4:22 particularly when we move into session
4:24 two we're going to get to see uh how
4:28 Russia was trying to to catch up with
4:30 the West as well uh and in the Far East
4:34 there will be China that is also viewing
4:37 with great interest the kind of changes
4:40 taking place in the west and they
4:42 themselves try to modernize in their
4:44 unique way um and this is something that
4:47 we're also going to assess particularly
4:49 as we're moving into session three of
4:52 this topic all right so as the table of
4:56 contents
4:58 show
5:01 the way we're going to approach this
5:03 topic is that uh initially we're going
5:06 to offer a general
5:09 introduction to this topic and this is
5:12 going to f Focus primarily on modernity
5:17 itself now we cover of course um the
5:21 revolutions that brought modernity in
5:24 the four topic you know we looked at the
5:27 intellectual uh scientific uh
5:30 revolutions the economic political and
5:32 so on we're not going to repeat that
5:35 we're just going to
5:37 synthesize uh what we have covered and
5:39 we're going to put it in a different
5:41 context in other words how other
5:45 societies for example Latin America
5:47 Russia and China were trying to catch up
5:50 with the West what exactly were they
5:52 looking at in the west that they tried
5:55 to accomplish themselves again uh they
5:59 werey trying to incorporate what is
6:03 often called the Western Paradigm in
6:06 other words it was trying to westernize
6:07 you know but what is again the Western
6:11 Paradigm this is something that we're
6:12 going to cover initially in the first uh
6:15 half of the session before we move into
6:18 uh part one itself um which is going to
6:22 cover Latin America
6:25 okay so uh this region um as we had kind
6:33 of explored in the past was colonized by
6:36 Spain we're going to deal with that
6:39 quite briefly uh Latin America before
6:42 independence to look at the world as it
6:45 was in other words the world before
6:47 modernity and how uh with the process of
6:51 Independence and the formation of new
6:53 nations we're going to see the birth of
6:55 course uh of uh liberal uh regimes that
7:00 try to catch up with uh Europe in North
7:03 America trying to transform uh their
7:06 economies trying to form new countries
7:08 that will be considered modern uh part
7:11 two something we're going to cover in
7:14 session
7:14 two is going to pay attention to
7:17 modernity modernization in Russia as as
7:21 I explained again this is a an Empire
7:24 you
7:24 know by the standards of uh of the day
7:29 uh that that was very much trapped in a
7:31 feudal order despite the fact that
7:34 England Germany Holland France were you
7:37 know industrializing and
7:39 modernizing um and at some point once we
7:42 get into the 19th century particularly
7:45 the second half of the 19th century the
7:47 Russian Empire tried to change and they
7:50 tried to change very rapidly and they
7:52 were trying to industrialized and they
7:53 were trying to pretty much transform
7:56 also uh their economies particularly the
7:59 economy and trying to also create the
8:02 kind of system that was prevalent in the
8:04 west we're going to get to see that as
8:06 well and part three will devote to look
8:09 at China again this is a trading empire
8:13 we have been examining China almost
8:15 since the beginning of the course and
8:18 also uh the Imperial government of China
8:23 uh was trying at the same time that was
8:25 you know trying to promote uh exports
8:28 and trade trying to
8:30 agriculture at some point uh
8:32 particularly as we're moving into the
8:33 19th century uh uh the Chinese Imperial
8:37 government was looking with great
8:39 interest at the economic particularly
8:42 the material benefits of
8:46 industrialization not building things
8:48 like railroads and modernizing their
8:50 ports uh perhaps even bringing some
8:52 Industries and the like again they were
8:54 trying to get those benefits and we're
8:56 going to see the kind of policies that
8:58 they implemented uh well into the uh
9:01 first part of the 20th century when
9:03 China was trying to rapidly modernize
9:06 and trying to catch up with the West
9:08 again so we're going to be looking at
9:10 out all those uh processes uh in this uh
9:13 in this topic okay all right so let us
9:18 start then
9:20 with the general introduction as I
9:23 explain this is essential because
9:26 otherwise uh we're not going to
9:29 understand stand what was really
9:32 significant for nonwestern
9:35 Societies in terms of them trying to
9:38 achieve the kind of changes that Western
9:42 Europe and North America were going
9:44 through how do we identify how do we
9:48 describe modernity in other words what
9:50 is
9:51 modernity and this exactly again how the
9:55 West
9:56 particularly uh Western Europe and North
9:58 America is now uh reformulating itself
10:04 as we're approaching for example uh
10:07 particularly the 19th century and beyond
10:10 again uh the west or what is called
10:12 Western Civilization is really now
10:16 centered on what is called modernity you
10:18 know they're entering now the modern era
10:21 the modern world in other societies were
10:25 also trying to modernize and enter the
10:27 modern world and they were trying to
10:29 leave behind their uh ancestral past
10:33 particularly their feudal past so they
10:36 were trying to change so let us identify
10:39 then the main components of this uh
10:43 Western
10:44 Paradigm so we have a very clear notion
10:48 of what other societies were trying to
10:51 accomplish and there are going to be two
10:55 key issues yeah uh that will be the kind
10:59 of axis again of the modernizing project
11:04 and the project of modernity okay number
11:10 one and this is one of the central
11:12 pillars again that most societ is even
11:16 to this very present day I should noce
11:18 again it should be noted that even today
11:22 there are countries that are still
11:24 trying to modernize as well you know
11:26 they're called the developing countries
11:28 they're trying to develop their
11:31 economies so one of the central pillars
11:34 of modernity is what is called Economic
11:37 Development okay trying to develop the
11:40 economy okay what does that mean what
11:44 that means is that as the West began to
11:48 formulate a whole
11:50 new economic system uh centered on
11:55 individual ownership of property for
11:57 example you know the idea of free
12:00 enterprise free
12:02 markets remember again this is a
12:05 transition that started in England with
12:08 the English Civil War uh we talked about
12:11 that you know the economy was moving now
12:13 towards the market and profits for
12:15 example the creation of Enterprises Etc
12:18 uh the enclosure movement the enclosure
12:20 of lands you know to make the land of
12:23 course a business to make it productive
12:25 uh for capitalist you know development
12:28 to build wealth to make money in other
12:31 words okay um at the same time uh one of
12:36 the most profitable Enterprises that
12:38 flourish particularly as we're moving
12:39 into the 1700s was industry you know
12:42 factories manufacturing particularly
12:45 steel uh railroads for example coal
12:49 mining textile
12:52 manufacturing um and this is going to
12:54 include of course things like Finance as
12:56 well banking for example okay as well
12:59 and that really created a whole new
13:02 economic system based on once again
13:05 ownership of property then using the
13:08 property to create a business or an
13:09 Enterprise whether it was a factory a
13:12 shop and so on manufacturing PL so
13:17 on Commercial agriculture at the same
13:20 time um
13:23 and that also
13:26 entail um the
13:29 transformation of society in terms of uh
13:34 building things like modern
13:36 Transportation Systems know railroads
13:38 you know canals and the
13:42 like and also uh that
13:46 entail um what is called wage labor okay
13:51 what that means is that well there will
13:53 be people that didn't have the
13:55 wherewithal the capital to buy property
13:59 start a business and so what they did
14:01 was to uh trade or sell their labor for
14:06 a wage and this was also Central again
14:09 in the emergence of capitalism and also
14:12 the Industrial
14:15 Revolution wage labor okay so people are
14:19 trying to build wealth in various ways
14:22 one will be of course to produce
14:24 something for the market to manufacture
14:27 it and the other was to sell the labor
14:29 you know by actually producing that
14:32 product in an Enterprise like a factory
14:34 a mine and so on okay a business and so
14:37 on
14:38 okay now this is a whole new economy
14:42 that left the feudal system of uh Europe
14:47 uh in the past you know particularly
14:50 where capitalism was flourishing England
14:53 that the Homeland really of capitalism
14:56 and the Industrial Revolution and from
14:57 there it started spreading into other
14:59 areas of Europe uh like uh Holland
15:03 Germany France and of course North
15:07 America so we see a whole new way of
15:12 reorganizing Society you know around
15:16 capitalist
15:18 relationships what people are moving
15:21 towards the market to make
15:23 profits uh and the way people are
15:26 relating to one another is through the
15:29 payment of wages as well we hire people
15:31 to get things done in other words okay
15:34 this is a whole new system again of
15:37 social relationships as well this is no
15:39 longer the feudal system of landlord and
15:42 peasant in which there are mutual
15:45 obligations there are Patron client
15:48 relationships the Lord protector of the
15:51 people receives tribute in terms again
15:54 of crops and so on a statement for the
15:57 protection again so there's Mutual
15:59 obligation on both sides those
16:01 relationships are being abandoned
16:03 altogether and they're being replaced by
16:05 capless relationships in which people
16:08 come together to uh get things done in
16:11 society uh through the payment of wages
16:13 or salaries and so on again you know we
16:15 hire people with skills with expertise
16:18 and so on to get things
16:21 done now with within uh this new
16:27 emerging economic
16:30 system came with it of course
16:33 Innovation okay the innovation of new
16:38 technologies uh this is Central to the
16:41 Industrial Revolution as I explained you
16:44 know the idea that now machines are
16:47 replacing human labor we see the
16:49 invention of the uh several types of
16:52 machineries for example the steam engine
16:55 uh weaving spinning machines and so on
16:58 and that really accelerate the pace of
17:00 production which created really an
17:02 industrial revolution the Machine Age so
17:05 we see the birth the Advent of modern
17:08 technology uh modern science and again
17:12 the infusion of new ideas the
17:15 development of uh new type of
17:18 Technologies Machinery Etc this is going
17:20 to further and accelerate the
17:24 acceleration of the process of
17:27 industrial expansion
17:29 okay so this is what is called Economic
17:32 Development how do we develop an economy
17:35 well
17:37 we build a capless system we try to move
17:41 away from the feudal system of the past
17:44 based on agriculture the control of the
17:47 land by land
17:48 owners receiving rents again from uh the
17:53 commoner class peasants and so on and
17:57 again you have to be moving out towards
17:59 the market you have to create a whole
18:02 new system based on wealth generation
18:04 and wealth creation you know making
18:06 money in other words profits and this is
18:09 again what uh is considered Economic
18:12 Development how do we develop an economy
18:14 Etc again through capitalism in other
18:15 words you know that was the
18:18 idea you develop the economy because you
18:21 will create hundreds if not thousands of
18:24 new businesses and people through those
18:28 Enterprises will will be accumulating
18:30 wealth you're going to see the standards
18:33 of living rising and with that uh levels
18:38 of Education will also rise as well
18:41 there will be more uh schools more
18:43 universities people are pursuing their
18:46 own um future their own self-interest
18:50 and they're trying to receive education
18:53 skills in order to receive higher wages
18:56 and the like again so what we see is a
18:59 society that is being developed
19:01 economically in that way is increasing
19:04 and growing economically again this is
19:06 Central to what is called
19:09 modernity so it's Central again
19:11 initially to build capitalism and of
19:13 course industry investing in modern
19:16 science technology was Central
19:19 now by the late 18th century as this
19:24 process emerged initially in England
19:30 there will be certain philosophers SL
19:34 Scholars
19:38 that kind of put together in a sense a
19:43 theory of economic development in other
19:48 words this is not just something that
19:49 was
19:50 occurring in a improvised fashion in
19:54 England but rather uh what Scholars were
19:57 trying to do is is trying to explain
20:01 what was really happening in a kind of
20:03 theoretical way in a theoretical work
20:06 that this was part of an unorganized
20:09 system in other words okay uh and again
20:13 this is going to be uh giving rise to
20:16 new terms this is when people began to
20:19 identify the phenomenon of this new
20:22 economy as something called for example
20:26 capitalism or as as the kind of the
20:30 father of the theory of capitalism Adam
20:35 Smith came to term it as uh he called it
20:40 laces Fair economics or also it was
20:44 called uh economic liberalism once again
20:47 so capitalism uh was known by various
20:51 names okay and particularly when Adam
20:54 Smith was writing his uh book you know
20:57 this is a a very exhaustive presentation
21:01 of this new emerging system uh he called
21:05 his uh work The Wealth of
21:08 Nations um he's looking with great
21:11 interest at the Industrial Revolution
21:14 taking place in Britain which he called
21:17 the British miracle I mean for him it
21:19 was miraculous again the Industrial
21:21 Revolution you know the invention of the
21:23 machines the coming of the Machine age
21:25 you know railroads and the like you know
21:28 how
21:29 this new science modern science was
21:31 really creating miracles in other words
21:33 and those Miracles were being put to use
21:35 in the economy and for him uh this is
21:40 really transforming Human Society it was
21:43 giving rise to A Whole New World a whole
21:46 new civilization alog together so he was
21:48 really really interested in studying
21:51 this new economic system and trying to
21:54 give it a name and trying to explain how
21:57 it worked so so again so he called
22:00 capitalism initially uh economic
22:03 liberalism or lasis Fair economics in
22:06 this book The Wealth of
22:08 Nations why did he call it like that
22:10 well
22:12 because he's really coming out from the
22:15 enlightenment you know this
22:16 philosophical Revolution that occurred
22:19 in Europe particularly in the 18th
22:23 century uh that gave us the philosophies
22:28 of of uh liberalism you know uh
22:31 representative government democracy for
22:34 example human rights Etc equality for
22:37 example you know all of the things that
22:39 today uh modern systems of government
22:42 consider Central uh to the ways that
22:46 human societies have to be organized in
22:48 other words okay uh it again the idea is
22:51 that uh human beings function best when
22:55 they're set
22:56 free in the world world to determine
23:01 their own lives to determine their own
23:03 Futures okay so there again uh the
23:07 enlightenment created liberalism this is
23:09 really the byproduct of the
23:10 Enlightenment and the idea is that the
23:14 the the thinkers the philosophers of the
23:17 Enlightenment were really trying to
23:19 break away from the chains of the past
23:22 that kept human being confined you know
23:25 to play a very spe specific role in
23:29 society without much growth economic
23:33 growth intellectual growth Etc so what
23:35 kept really human beings down in other
23:37 words well institutions such as monarchy
23:40 for example you know the
23:42 aristocracy privilege uh and the church
23:46 the monopolies of the church trying to
23:48 educate the masses in a specific way so
23:52 uh so the masses will know their place
23:54 in other words in society convincing
23:56 them that this is the way that God had
23:58 ordain you know the world he had ordered
24:00 the world in such a way that everybody
24:02 had to stay in their place again so they
24:05 were trying to break away from that and
24:07 they started creating liberal ideas you
24:09 know liberal uh uh ideas regarding for
24:14 example freedom of thought you know free
24:16 thinking for example you know uh
24:19 liberating Educational Systems from the
24:21 power of the church and so on uh and
24:25 they were trying to gain a voice in the
24:27 state you know the right vote for
24:29 example representation in government as
24:31 well by the masses uh and in the economy
24:34 this is what Adam Smith was much
24:37 concerned about is that Adam Smith was
24:40 also applying the liberal ideas of the
24:43 Enlightenment into the economy as well
24:46 proposing that human beings function
24:49 best when they're set free to pursue
24:52 their
24:54 self-interest to pursue their
24:56 self-interest so we need to to set the
24:59 economy free and this is why it's called
25:02 economic liberalism or laces Fair
25:05 economics lais fair means hands off
25:08 lasis fair means hands off in other
25:10 words from who well from from the state
25:15 or from the monarchy so instead of the
25:17 monarchy trying to plan and manage the
25:22 economy trying to create policies that
25:25 will restrict economic transaction
25:28 ctions limit trade that instead uh what
25:32 Adam Smith is proposing is that we're
25:34 moving into a new era in which in this
25:37 new era what we call capitalism in other
25:39 words uh what we're moving into is into
25:42 a system in which we're liberating
25:45 Society from those shackles so to speak
25:50 that were separating the state from the
25:53 economy it's almost like separating
25:54 church and state but in this case is
25:56 separating the state and economy in
25:58 other words that they should you know
26:01 function independently again this is
26:03 hands off in other words that you know
26:05 the state shouldn't be playing a key
26:07 role in the
26:08 economy it should be guiding it again
26:11 maybe providing certain you know rules
26:14 and so on uh for the game but you should
26:17 allow in other words the people uh the
26:19 citizens to pursue their own selfish
26:23 interest because ultimately when each
26:26 individual is pursuing
26:28 his or her own selfish interest
26:31 everybody will benefit again this is
26:33 what Adam Smith is proposing okay um so
26:38 you want to be let's say a baker and
26:42 you're pursuing that interest and by
26:44 pursuing that interest by pursuing that
26:47 path you will find a way to either get
26:50 the skills to bake for example uh and
26:54 you will work in order to save money
26:56 invest it so you can buy a shop
26:59 equipment and you open up your own
27:01 business and by doing what you want to
27:03 do pursuing your own self-interest uh
27:06 Society will benefit from that you will
27:07 offer a good product in other words you
27:09 will offer them you know good bread and
27:13 you know cakes Etc pastries you name it
27:16 whatever you're you're creating and the
27:18 same applies with everything else again
27:20 so this is what he suggesting so again
27:23 he's calling for uh pre markets you know
27:27 that we should open the Market to be
27:29 free for people to create all kinds of
27:33 businesses what that entails of course
27:35 is to allow people to own property again
27:39 it's very essential I mean this is again
27:41 the basis of capitalism private property
27:44 so you need a free market economy again
27:46 you need to allow people to participate
27:49 in the market quite freely to pursue
27:51 their own self-interest so they will
27:54 produce something for other people in
27:57 the process and of course that entails
27:59 also allowing people to create all kinds
28:01 of businesses what it's called free
28:03 enterprise people will create businesses
28:06 that will
28:09 uh Express their skills their uh
28:15 talents uh their Devotion to
28:18 work and the idea is that they have to
28:21 be in control of their own Enterprise as
28:24 well again so the owner of the
28:26 Enterprise is pretty much setting policy
28:29 you know how much you want to produce
28:31 again it's up to you it's up to the
28:33 owner that's what it's called free
28:34 enterprise that the state is not really
28:36 dictating is not really telling you what
28:39 to produce how many units and so on
28:42 again that is what's called Free
28:43 Enterprise in other words is totally
28:45 owned Again by um by the person in
28:49 charge you know the actual owner of the
28:51 business okay now in The Wealth of
28:55 Nations uh Adam Smith introduced uses
28:58 the idea that he had discovered a
29:02 natural law again this is Central to the
29:05 Enlightenment and the Scientific
29:07 Revolution you know the idea that there
29:09 are laws of nature that nature is like a
29:13 clock in other words like mechanical
29:15 clock and is very orderly is programmed
29:18 to function in a very precise way those
29:20 are the laws of nature and scientists
29:23 are looking to discover the laws of
29:24 nature well Adam Smith believed that he
29:27 had discover one of those laws and those
29:30 laws govern the
29:32 economy and he called that law the
29:35 invisible
29:36 hand that when you set the economy free
29:40 and there are no restrictions by the
29:42 state you know the economy is in the
29:45 hands of The Producers Merchants
29:49 manufacturers Artisans and so on they
29:52 are the ones in charge of the economy
29:54 when that occurs then you create a kind
29:57 of Natural Balance he said again I this
30:00 is his own Theory okay and this Natural
30:04 Balance is kept by the Invisible Hand of
30:08 nature because we entered into harmony
30:12 with nature when people don't feel
30:14 restricted when we're following our own
30:17 path our own talents uh our own
30:20 interests therefore we create a balance
30:23 you know that this is how balance is
30:26 maintained in the economy ter of for
30:28 example prices you know how prices are
30:32 kept balanced well there's a supply and
30:34 demand okay people demand a certain
30:37 product and if there's a supply of that
30:40 product then you establish a certain
30:42 price how prices go up and down well if
30:46 the supply is scarce then the price goes
30:49 up because again there's a limited
30:52 amount of goods that can be produced to
30:55 supply the demand and so on when the
30:58 supply exceeds the demand the prices go
31:01 down and so on and so he sees that as a
31:04 kind of natural law again uh the law of
31:07 Nature and he called it the Invisible
31:09 Hand by the way okay now he calls his
31:14 work The Wealth of Nations because in a
31:16 sense this is a work that is almost like
31:20 a an announcement to the
31:23 world then people around the world are
31:25 going to be reading his work and no the
31:29 idea was
31:30 that what he's actually proposing is
31:34 that to build wealth a wealthy Nation
31:37 again this is a message to all the
31:39 nations of the world what he's actually
31:41 saying to them is that look you know if
31:44 you want your nation to develop to
31:46 achieve development what is called
31:48 Economic Development you need to
31:52 implement capitalism or a lasis fair
31:56 economy okay where you allow again
32:00 people to own property you open the
32:03 market you create free
32:05 enterprise and uh you set free the
32:10 economy to function on its own in other
32:12 words okay but most
32:15 importantly what he's also proposing is
32:17 that in order for a country to be
32:20 wealthy that Country Must also
32:23 industrialize as well it was not enough
32:26 to allow private property and free
32:28 enterprise okay it was also essential
32:32 for a country to build wealth to
32:35 industrialize factories for example
32:37 railroads and the like again that that
32:40 was going to
32:43 generate massive
32:46 fortunes for that Society because that
32:50 Society will be very and very highly
32:56 productive again this is in sharp
32:58 contrast with the kind of economic
33:00 systems of the past you know in the past
33:03 you know how economies were formed and
33:06 this is something we have been
33:07 discussing pretty much across uh the
33:10 semester is that uh before the IND
33:13 Revolution all economies were
33:14 agricultural economies so what Adam
33:17 Smith is saying is that although
33:19 agriculture has still some value I mean
33:22 he's not really trying to abolish it we
33:24 still need agriculture we need food for
33:27 example we need grain we need cash crops
33:29 Etc yeah but this idea that your entire
33:33 National economy is going to be based on
33:36 agricultural production he said we don't
33:38 we need to move away from that because
33:40 what happens when you have a bad year
33:43 okay what happens when you have you
33:45 know uh crop failures droughts when you
33:50 have um plagues for instance you know
33:54 what happens when you have those
33:56 calamities
33:58 well the economy will stall and it will
34:02 not recover until the Calamity subsides
34:06 that might take a season that might take
34:09 a year maybe a decade so what Adam Smith
34:13 is saying if you want the economy to
34:15 continue producing to keep jobs for
34:18 example and wages and to keep uh uh
34:23 opening up markets and so on you need
34:26 industry you need Machinery you need
34:28 modern science you need technology you
34:31 need railroads you need factories again
34:35 this is what is going to create wealth
34:37 The Wealth of Nations again so this was
34:40 really again uh a kind of message to the
34:43 world that we are entering a new era
34:46 that it was important to modernize it
34:49 was important to transform uh human
34:52 societies through capitalism and of
34:54 course he's also talking about the
34:55 division of labor you know that because
34:58 of this new economic system capitalism
35:01 and Industrial Revolution people will
35:04 eventually develop different
35:06 skills you know and they will divide
35:09 themselves into classes in other words
35:12 okay like the working class will be
35:14 people that you know simply operate the
35:17 machines uh they choose he said to just
35:20 stay in that level you know as simply uh
35:24 operating the machines and providing of
35:26 course physical labor in Industries Etc
35:30 there will be people that will be
35:31 educating themselves acquiring
35:34 specialized knowledge skills they will
35:36 be moving into training schools
35:38 vocational schools universities and that
35:42 knowledge will be more
35:45 rewarding they will earn higher wages
35:48 and they will become part of the middle
35:50 class the professional managerial class
35:53 in other words okay and again he really
35:56 believed that this was the natural
35:58 order of life you know that eventually
36:02 what capitalism was going to do is
36:03 divide Society into different social
36:05 classes because people will be pursuing
36:08 different paths you know for progress in
36:12 other words okay so again this is really
36:14 what he's suggesting you know we need to
36:17 industrialize and we need to uh also uh
36:22 form a society that will naturally
36:26 divide into different social classes the
36:28 working class the middle class and of
36:29 course the upper class will be the
36:30 owners of the means of production the
36:33 owners of industry in other words
36:36 okay now having said that it's very
36:39 important to note that uh this kind of
36:43 system you know capitalism in other
36:45 words even though it flourished in Great
36:48 Britain um took different uh characters
36:53 in different countries now this is not
36:56 going to be a kind of one-size fitall
37:00 kind of system in which every country
37:02 that adopted capitalism you know carried
37:06 out capitalism and industrialization in
37:08 the exact same way and and this is very
37:11 true today as well so what occurred is
37:15 that although capitalism began to spread
37:18 into different areas of the West it took
37:21 it took on different characteristics so
37:23 we see the emergence of different types
37:24 of what is called National capitalisms
37:27 in other words so there are different
37:29 types again of capitalism based on the
37:33 kind of country the kind of social
37:35 situation in which it flourished for
37:40 example in Great Britain again this is
37:43 the home of
37:45 capitalism um if you recall in previous
37:48 discussions you know when we talked
37:50 about the age of revolutions
37:52 particularly the English Civil War there
37:55 was a struggle of course between the new
37:57 merch merch class um that wanted reform
38:00 they wanted private property in the old
38:03 feudal order you know there was a landed
38:07 aristocracy the the the nobility for
38:09 example that were just sitting there
38:11 collecting rants from the commoners uh
38:14 and eventually that led to the Civil War
38:17 the English Civil War again in the uh
38:22 1640s now the landed aristocracy was
38:26 defeated
38:28 but it was not abolished okay what we
38:31 see is that what in England took place
38:36 is that we see a new
38:39 class a new class of merchants uh
38:43 financers industrialist that together
38:46 became known as the new liberal
38:49 Bazi again the they are the owners of
38:53 the means of production they own the
38:56 financial institution
38:58 they own the industries the factories
39:00 for example the trading companies and
39:02 the like and together they constituted a
39:05 new kind of elite uh that was
39:08 characterized as an industrial Elite the
39:11 owners of industry and the owners of
39:13 Finance as
39:16 well they control manufacturing trade
39:20 overseas as they're moving into the
39:22 Indian Ocean and other regions of the
39:26 world um and of course railroads as
39:30 well now even though they won the Civil
39:34 War as I mentioned they're not going to
39:37 abolish the land of aristocracy they
39:39 form an economic and even a political
39:43 alliance with the
39:45 aristocracy they're going to come
39:47 together they're going to merge their
39:48 interest in other words you know the old
39:50 nobility even though they stayed you
39:53 know as landlords in other words uh
39:56 they're forming economic alliances with
39:59 this new industrial Financial Elite and
40:02 they both constituted pretty much a
40:04 united front particularly when they saw
40:07 that the working class again remember
40:11 this is what Adam Smith said inevitably
40:13 there will be different classes and we
40:15 have a working class
40:17 below uh that was agitating and they're
40:23 confronting the big Capital class for
40:26 example the they're organizing and so on
40:29 and both the aristocracy and the new
40:32 buasi came together particularly because
40:36 they needed to kind of maintain that uh
40:40 privilege system in other words of
40:44 entitlements to land for example but
40:46 also entitlements to Capital and they
40:48 both come together to suppress labor in
40:52 other words so this is the kind of
40:55 capitalism we see in Great Britain again
40:58 it is really an alliance between the new
41:00 the newa rich the new rich and the old
41:02 money the old landed aristocracy and
41:05 they're forming of course a kind of
41:07 national capitalism in Britain in France
41:11 we see quite something different here in
41:14 that in France during the French
41:16 Revolution there was also a clash
41:19 between the capist Bui you know the new
41:22 Merchant class the new Rich the newva
41:25 rich against the nobility and the
41:27 monarchy you know that produced the
41:29 French Revolution we talked about that
41:31 in the
41:32 past now here uh the new vui is not
41:36 going to reach out to the nobility and
41:38 build an alliance with them again
41:40 because this was a far more violent and
41:43 bloody
41:44 conflict um and the nobility was
41:48 persecuted in many cases in France again
41:50 many of them actually fled France and
41:52 they moved it to other areas of
41:54 Europe instead what the new new
41:57 capitalist class in France did was to
42:00 reach out to small producers the petty
42:04 buasi as they were called the petty
42:06 producers you know they form an alliance
42:08 with Artisans Craftsman and Traders you
42:11 know it's like really uh the lower
42:13 middle class so to speak and they
42:15 together took over France uh and France
42:19 will remain not
42:22 necessarily a highly industrialized
42:24 Society the way Great Britain was
42:27 controlled by big capitalists of course
42:29 and big Finance
42:30 seers this is again a society in which
42:33 uh small producers and the capitalist
42:36 are running the country so therefore for
42:38 the most part France will remain still
42:41 largely rural in Agricultural Center
42:46 okay you know people in the countryside
42:48 are pretty much in control of their own
42:51 Enterprises their businesses for example
42:54 and the agricultural sector continues to
42:56 be Cent control uh in France as well you
42:59 know producing things like cotton silk
43:02 and of course the industrialist uh
43:04 control metal production you know steel
43:07 plants and so on metalurgy as well so
43:10 again uh in France we're not going to
43:13 see the kind of Industrial Revolution
43:15 that we saw in Britain the big capitals
43:18 for example big industrialists this is
43:20 more like a society of small producers
43:24 okay and the big capitalist of course uh
43:27 are running of course uh businesses
43:30 Enterprises abroad they're moving into
43:33 Africa you know we talked about that you
43:36 know um in Germany the situation is also
43:41 quite different this is another kind of
43:43 national uh capitalism in that here
43:46 we're not going to see the dominance the
43:49 prominence of an industrial capitalist
43:53 class indeed the landed nobility will
43:57 remain sup Supreme okay uh they're
44:01 called the junkers the junkers were
44:04 really the large land doners that really
44:06 go back centuries into the past running
44:09 a feudal system and what we see is a
44:11 mixture of capitalism and
44:14 feudalism this is really a hybrid in
44:18 which yes you know Germany is
44:21 industrializing you know they're
44:22 building industrial plants and
44:24 industries and the like but the
44:26 industrial are not dominant in the
44:28 economy the large land owners are
44:31 they're controlling the state they're
44:33 controlling policy again um and uh this
44:38 is uh so because the industrialist face
44:42 significant opposition by the first and
44:47 foremost the working class who was
44:50 becoming very organized in Germany we
44:53 see the formation of syndicates and
44:55 unions for example confronting the
44:57 industrialists and also the landlords so
45:00 again this is not to say that the
45:01 landlords and the workers are together
45:04 in an alliance but again there are
45:06 different forces that are trying to
45:09 compete for the control of the state and
45:11 ultimately the landed nobility end up
45:14 winning again so again the industrialist
45:17 are secondary and the nobility the old
45:20 nobility is
45:22 really primary keep that in mind because
45:25 this is going to be important as we're
45:26 going to be discussing Latin America and
45:29 Russia you know particularly you know
45:31 what kind of capitalism they're going to
45:34 implement you know are are we talking
45:36 about big Capital big Industries and so
45:38 on finance years dominating the process
45:41 or you know our landlords are still
45:44 going to be dominating the process as
45:45 well again in the US what we see is
45:50 quite a different scenario we see the
45:52 introduction of
45:54 capitalism very early on in the the US
45:57 North particularly the
45:59 Northeast uh we see the process of an
46:02 industrial revolution starting around
46:04 1816 the Northeast is industrializing
46:06 textile manufacturing railroads and so
46:09 on coal mines iron ore and so on uh and
46:14 what we see is really uh uh the division
46:18 of the country between two sections uh
46:21 in the north we see Industries
46:24 manufacturing you know what it's called
46:26 a commercial e economy capitalism and in
46:29 the South what we see is still feudalism
46:31 you know a society dominated by
46:34 plantation owners who are growing cotton
46:37 for the industries by the use of slave
46:39 labor so there's going to be inevitably
46:42 a struggle for power between two main
46:46 groups very powerful by the way uh on
46:51 one hand the northern manufacturers who
46:53 are trying to dominate policy in the US
46:56 and in the South the feudal
46:58 landowners the the planter class who are
47:01 also very wealthy I mean uh one can say
47:04 that the Planters were perhaps even
47:06 wealthier than the manufacturers and
47:09 they were exercising significant
47:11 influence in the US Congress by lobbying
47:14 and so on to protect slavery and that
47:16 led to the Civil War again just like in
47:18 England there was a war and also in
47:20 France the revolution here we're also
47:22 seeing of course A Clash of forces
47:25 between the neoliberal order based on
47:27 capitalism in industry and the all
47:29 feudal order based on slavery in the
47:32 South so the Civil War itself really
47:36 opened up the opportunities to create a
47:39 new liberal bouro as well you know the
47:43 rise of an industrial Elite that will
47:47 emerge triumphant and dominant in the
47:52 economy why why is it that the Civil War
47:55 provided that opening well is because
47:57 during the Civil War you know the
47:59 federal government actually needed
48:01 Industries to
48:03 produce uh things like weapons for
48:05 example
48:07 Transportation uniforms Etc uh Munitions
48:13 uh loans and that required of course
48:16 Merchants who had been running of course
48:19 small businesses to create massive again
48:23 Enterprises to the point that they're
48:26 going to create create what today in
48:28 history are known as big businesses in
48:30 other words the rise of big business you
48:32 know huge monopolies in other words okay
48:36 uh people like for example JP Morgan
48:38 that provided again Finance Loans to the
48:42 union again and also selling you know uh
48:45 uniforms for the troops and the like uh
48:48 vanderville providing transportation
48:51 services and he control the canals
48:54 across the north um and to move troops
48:57 to me to move supplies and food uh and
49:01 John D Rockefeller of course controlling
49:03 the oil industry selling oil as well so
49:06 uh in the end the feudal
49:11 uh landlords of the US South were
49:15 defeated and what we see is the
49:18 supremacy of an industrial Elite that
49:21 will dominate now uh the capitalist
49:24 economy of the United States again
49:25 through big businesses and trusts
49:27 monopolies and the like again so this is
49:30 a whole different of course uh type of
49:33 capitalism now the other pillar uh of
49:38 modernity are the liberal ideas of the
49:40 Enlightenment again I'm not going to
49:42 repeat everything I mentioned uh back
49:44 during the age of revolutions just to
49:47 kind of re recap what we discussed and
49:51 that is again the liberal ideas of the
49:53 Enlightenment were trying to create new
49:55 systems of government uh based on
49:58 representation what is called liberal
49:59 democracy you know granting people a say
50:02 in the system the right to vote uh a
50:05 Bill of Rights for example and so on
50:08 again so this is also Central that as
50:10 other societies are trying to modernize
50:12 the other issue besides the economy was
50:15 the issue of the political system you
50:17 know trying to build a democracy for
50:19 example you know this idea of equality
50:22 you know trying to provide of course
50:24 equal representation under the law for
50:27 all citizens and also a certain degree
50:30 of economic equality again and to the
50:33 point that people have access for
50:35 example to education resources jobs and
50:39 the like again this is something that
50:41 also regimes governments around the
50:44 world are concerned when they're talking
50:46 about Mo modernity you know this idea of
50:49 secularism separating church and state
50:52 trying to secular secularize for example
50:55 uh education
50:57 for people to receive scientific
50:59 training scientific education math
51:02 Sciences physics for engineering for
51:06 this new world that they're trying to
51:08 build in other words okay so then this
51:10 is the modernizing uh project you know
51:14 that um other societies are trying to
51:18 emulate and at the same time westerners
51:22 are trying to spread those ideas around
51:24 the world you know when they talk about
51:26 spreading Western Civilization they're
51:29 mainly talking about for example the
51:31 idea of spreading capitalism you know um
51:35 spreading uh the Industrial Revolution
51:38 modern science technology and the
51:41 liberal ideas of the Enlightenment okay
51:45 and one of the first regions that we're
51:47 going to see an attempt to incorporate
51:51 all of those issues what we call
51:53 modernity uh was Latin America okay this
51:57 is a considered a nonwestern uh region
52:02 you know when we mean about nonwestern
52:04 we mean
52:06 about not necessarily uh geographical of
52:10 course region but rather cultural region
52:13 that this is not a region that was
52:16 culturally connected to uh Western
52:20 Europe in the US again it it really
52:23 comes from a whole different cultural
52:26 mindset cultural background altogether
52:29 very
52:30 distinct um and so uh Latin America will
52:34 be one of those regions that were was
52:38 trying to reamp their societies to build
52:43 new economic systems and even political
52:46 systems uh that will mirror the kind of
52:51 systems that we just
52:53 described that Great Britain
52:55 particularly and the US uh were
52:58 implementing you know Great Britain and
53:01 the US will become the kind of like the
53:03 role models for virtually most Nations
53:07 around the world to uh adopt this
53:12 new system called modernity
53:16 okay so let us talk about Latin America
53:19 and I explain uh we need to begin with
53:24 first and foremost l America before
53:28 modernization what we called the world
53:31 as it was before modernity okay the
53:34 world as it was
53:37 okay so modernity will begin to take
53:41 place in Latin America in the 19th
53:43 century but it was struggling so much to
53:49 modernize because of its Colonial
53:52 Legacy this is why I spent some time
53:55 talking about National capitalisms you
53:57 know in Britain Germany France and the
53:59 us there was a struggle in other words
54:02 to modernize those societies a clash and
54:05 so on between the feudal order and the
54:09 new capitalist order for example and the
54:12 same holds true for every country around
54:15 the world that has been trying to
54:17 modernize you know including Latin
54:19 America Latin America was struggling
54:21 with its Colonial
54:23 Legacy okay the colonial Legacy of Latin
54:27 America this is a region that was um
54:31 conquered by the Spanish Empire we cover
54:33 that in the past you know and in the
54:36 1500s early
54:38 1500s the Spaniards uh develop a series
54:42 of colonies through Conquest
54:46 particularly they topple a series of
54:48 Empires like the astics and the Incas
54:50 for example and other Native American
54:52 groups the Mayas and the
54:54 like and in this process of the
54:59 conquest the Spaniards implemented a
55:03 colonial World a colonial society that
55:07 mirrored the kind of world that existed
55:11 back in Spain no during this time Spain
55:14 still was a feudal
55:17 society it was a society controlled by
55:19 the monarchy by the church in the
55:23 aristocracy a landed Elite
55:26 and it was a society that was in many
55:30 ways transplanted into the new world
55:34 there were many elements in other words
55:36 of Spanish feudal society that were
55:41 transplanted into the American
55:44 colonies which they control
55:48 okay for
55:51 example they
55:52 transplanted the system of a landed
55:55 Elite that was prevalent back in
55:59 Spain it was a system in
56:02 which Spain the king of Spain who was
56:05 really the Supreme owner of the real in
56:09 other words shared some of the land with
56:13 people that provided valuable services
56:15 to the crow particularly military
56:21 services fighting for example in Spain
56:24 you know will be individ
56:26 uals Knights for example fighting the
56:30 Moors the Arabs trying to expel them out
56:32 of the Iberian Peninsula they're known
56:34 as The Conquistadors the conquerors of
56:37 territories on behalf of the crown
56:40 carrying the cross with them fighting
56:42 for Christianity for example well that
56:45 kind of idea got transplanted into the
56:47 new world what we see is we see also the
56:50 arrival of military figures like Cortez
56:54 and pisaro among others that are coming
56:57 with that mindset that they're fighting
56:58 for the crown and for the church to
57:01 conquer new lands and the idea is that
57:05 if you do that you get rewarded you're
57:07 being given a land
57:09 grant okay uh just back in Spain you
57:13 know if you conquered new lands on
57:14 behalf of the king you'll be given of
57:16 course the opportunities to become a
57:18 landlord okay that was the reward you're
57:20 rewarding that kind of service and
57:22 loyalty so the Conquistadors are also
57:25 coming with that idea
57:27 and here in the new world those land
57:29 grants became known as the encomenda
57:32 again this is really a large tract of
57:34 land in which the Conquistador will
57:37 control on behalf of the king and the
57:41 Conquistador was given access to the
57:44 tribute paid by the natives you know the
57:46 natives will have to pay tribute to the
57:48 landlord in other words as the encomenda
57:51 of course uh the Conquistador or the
57:54 encomendero again will have to protect
57:57 the population and make sure that they
58:00 convert to Christianity that was the
58:02 idea again the
58:04 trade back in Spain also the church was
58:08 a large landowner as well they also
58:10 control large tracks of land because
58:13 there was an alliance between the
58:15 monarchy and the church in this process
58:17 of the
58:18 reconquest and that process was
58:21 transplanted into the new world as well
58:24 in terms of when the church church was
58:26 given the mission to move into the new
58:29 world it was given the mission to move
58:32 into the new world in order to spread
58:34 Christianity among the natives and to
58:36 create a Catholic identity for people to
58:39 accept the conquest to accept the new
58:43 ruling Elite in other words the
58:45 Spaniards you know to Foster obedience
58:48 and loyalty to the crown and you know
58:50 the colonial institutions and the like
58:53 telling people that this is the way that
58:55 God God had ordained the world in other
58:58 words okay so because they had a very
59:01 important mission to
59:03 fulfill the church was at the same time
59:06 given access to
59:09 resources uh or lands you know this is
59:12 something that the
59:14 crown U did by emitting an edict uh this
59:20 is like a piece of legislation a decree
59:22 in other words emitted by the crown that
59:25 was other known as the Mercedes land
59:28 grants you know what that meant is that
59:31 the church will be given access to huge
59:36 tracks of land for the church to control
59:40 to build missions for example
59:43 monasteries uh churches and the like
59:47 convents and so on you know uh to
59:50 christianize the
59:52 natives and they will use the land as
59:55 they f did they will also request the
59:58 natives to pay tribute to them as
60:02 well and the Native Americans that live
60:06 within the church land
60:09 grants however uh the indigenous
60:13 populations were granted a certain
60:15 degree of autonomy for them to continue
60:20 controlling their own lands that was
60:22 part of this decree the Mercedes or mer
60:25 Mercedes is land grants okay that
60:29 although the church is becoming a major
60:31 land owner in the new world and what is
60:35 called Spanish
60:36 America the indigenous populations that
60:39 live within those Church lands that pay
60:41 tribute to the church in labor crops Etc
60:45 they're they are in control of their own
60:47 land as well and that allow for the
60:51 indigenous populations to uh perpetuate
60:56 in many ways their unique cultures and
61:01 traditions because they were self-
61:03 sustaining in other words they conducted
61:06 what was called subsistence farming they
61:09 were growing their own grain their own
61:11 crops and by doing that because they
61:13 were feeding themselves they had to of
61:15 course share part of the crop with the
61:18 land owner with the church and so on pay
61:20 tribute and the like but that kind of
61:24 autonomy the the control of their own
61:27 village lands uh created the
61:30 opportunities for them
61:32 to continue their cultures and
61:35 traditions again that really created
61:39 cultural continuity in other words
61:41 cultural Independence among the Native
61:44 American
61:45 population and the natives were happy
61:47 with that I mean this is an
61:49 overstatement you know this is not to
61:52 say that they were happy with the
61:53 situation that they were conquered by
61:56 any stretch of the
61:57 imagination but to a certain degree the
62:01 fact that they were still in control of
62:03 their own cultures was very very
62:06 significant for them okay uh they were
62:09 required to pay tribute they were
62:11 required to convert but as far as their
62:13 own Traditions their own languages and
62:16 their own beliefs they continue to
62:19 perpetuate those inside of the village
62:21 in other words because they control
62:23 those land Holdings and the church kind
62:25 of protected that system as well they
62:28 found that system to be convenient for
62:30 all parties in other words that kept the
62:32 indigenous population to a certain
62:33 degree quote unquote content in other
62:37 words they had to provide tribute
62:40 however again this is a feudal society
62:42 in which uh the land owners you know the
62:48 Conquistadors um and the church are
62:50 simply there to collect rant in other
62:53 words they're just collecting tribute
62:55 from from the indigenous population from
62:57 the peasantry and the like so again this
63:00 is not really a capitalist economy based
63:02 on the market in other words okay
63:06 now we spoke about the great dying of
63:09 course there's uh epidemics particularly
63:12 small poox yellow fever measles Etc that
63:16 decimated the Native American population
63:19 about 90% from uh 1492 to 1650 uh of the
63:24 Native American population died
63:26 so what that required was the formation
63:29 of a new kind of system a new Enterprise
63:33 so to speak that will replace the
63:37 encomenda and so as we're moving into
63:40 the
63:41 1600s uh we're going to see the rise of
63:44 what is called the
63:45 Henda what is the Henda you know is
63:48 really a place in which uh people are uh
63:53 trying to produce for example
63:56 things like cattle you know for the
63:59 colonist you know the colonist the
64:01 Spanish colonist had really an
64:03 insatiable appetite for meat they had to
64:06 be fed and because there's a scarcity of
64:09 Labor because the Native American
64:12 population was dying in great numbers
64:14 well the Henda has to be brought in as a
64:19 new unit a new system of production in
64:21 which again we're going to see now large
64:24 tracks of land being owned by a single
64:27 individual the asend for example in
64:30 which uh all you require which is a hand
64:33 few of people to come in and tend cattle
64:36 for example because of the scarcity of
64:38 Labor you know cattle will be grazed and
64:41 raised and there will be Slaughter there
64:44 to provide meat to the surrounding
64:46 settlements and Villages and communities
64:49 that the Spanish were creating for
64:52 example overall as a whole
64:56 we can say that in this very early phase
64:58 of
65:00 colonization in this colonial Legacy
65:02 what we see is a very
65:04 paternalistic kind of system in which
65:07 the Conquistadors you know this colonial
65:10 Elite uh the Asados for example you know
65:14 the Conquistadors the land owners and
65:16 even the church they really sought
65:19 themselves as uh the father figure of
65:24 the people they are are taking care of
65:26 them in other words they're the
65:28 overseers the quote unquote Protectors
65:31 of the population and most people lived
65:34 in the countryside so this is a rural
65:37 Society again the vast majority of the
65:40 population are peasants they're working
65:42 the land they're growing crops uh and
65:45 they're paying tribute to a landlord
65:48 that in return the landlord landlord has
65:52 to provide protection you know this is
65:54 the kind of feudal system again that
65:57 existed before of course the arrival of
66:02 capitalism into Spanish America so this
66:04 is extremely important to
66:07 note that at some point during the
66:10 colonial period we're going to see the
66:13 gradual rise of capitalism again
66:16 capitalism is not going to just simply
66:18 appear in the 19th century uh in Latin
66:22 America it began to emerge very early on
66:26 you know in earlier times you know
66:28 during the colonial period and that
66:32 occurred around the mid
66:37 1600s we see the rise of capitalism the
66:41 early rise again this is not full-blown
66:44 capitalism this is really the early rise
66:46 when we see the rise of a market economy
66:49 in Spanish America a market economy
66:52 again this is now an economy moving
66:54 towards the market people are trying to
66:56 create something to make money profit
67:00 that's what capitalism is again markets
67:02 and profit okay not just controlling
67:06 land in order to collect
67:08 grants that's the fu system so we're
67:12 seeing now a market oriented economy and
67:16 that begins around the mid
67:19 1600s when suddenly around 1650 the
67:23 indigenous population be begins to
67:26 recover from the epidemics you know
67:29 there's going to be a rebound effect in
67:32 other words starting around 1650 and we
67:35 see a population boom all over Spanish
67:39 America not only because the indigenous
67:42 population was recovering it's also
67:44 because we see the emergence of what is
67:46 called mixed races as well again people
67:50 that have both European indigenous
67:53 ancestry or African
67:55 and Indigenous or African and European
67:59 Etc and what we see is now the rise of a
68:03 multiplicity of different
68:05 groups and with the rise of population
68:08 this is going to place an enormous
68:10 demands of essential goods and products
68:14 and they are colonist and they are in
68:17 need of clothing they are in need of
68:20 food uh shelter they're in need of
68:24 hardware tools Etc and the like so this
68:29 created a commercial revolution a
68:32 revolution in Commerce because yeah
68:35 there's a great demand for products and
68:38 Spain was unable to bring in and import
68:42 all of those products into her own
68:44 colony so at some point uh Spain the
68:48 mother country needed to open up the
68:50 economy in other words look you know we
68:52 need to open up the economy and allow
68:54 allow the economy to kind of flourish
68:56 and allow producers in other words uh to
68:59 create businesses and the like we need a
69:02 monetary system and the like we need to
69:04 allow that and what we see is the
69:07 formation of a new kind of quote
69:10 unquote capitalist type of Enterprise
69:14 and that is the commercial
69:16 Henda what is the commercial Henda was I
69:19 mentioned you know there were hias
69:20 already and those were just landed
69:22 States people were tending cattle you
69:25 know Etc you know to feed the
69:26 populations but now the Henda will be
69:31 the most important economic unit in
69:35 Spanish America in which everything that
69:38 the colonist the colonies require and
69:41 needed will be produced there okay so
69:45 this is a multifaceted type of
69:48 Enterprise it is really a combination of
69:51 a farm it is also a combination of a
69:55 cattle ranch and also a kind of a
69:58 factory as well I mean this is not
70:01 really the kind of factory we see in the
70:03 industrial revolution where there's
70:04 machines uh but there are Artisans that
70:08 are weaving or they're crafting you know
70:11 uh clothing items Etc Hardware
70:14 blacksmiths for example and so on a kind
70:17 of factory so still again we see the
70:20 major again uh uh unit of production the
70:24 hen owned by the asend the land owner
70:29 and we see of course a new class of
70:31 people you know that will start
70:33 dominating the Colonial economy they're
70:35 the first capitalist you know the Ascend
70:38 so to speak that are engaged in this
70:40 commercial revolution they're producing
70:42 you know the grain the food uh for the
70:46 colonist you know the grain is grown
70:48 there uh the Sheep cattle in the cattle
70:52 ranches Animal Farms within the asend as
70:55 well and also the clothing all the
70:59 textiles that are being sold in across
71:02 Spanish America once again are produced
71:05 in the commercial lendas you know other
71:07 kinds of Commodities like chocolate
71:09 leather dyes Etc are also manufactured
71:14 there what this led to was not just a
71:18 commercial revolution a revolution in
71:21 Commerce it also led to a new class of
71:27 people
71:29 producers Independent Producers who in
71:32 their own right they're going to become
71:35 also part of this new emerging
71:38 capitalist
71:39 class their middle class producers and
71:43 they're not centered in the major cities
71:46 of Spanish America they're centered in
71:49 the small towns particularly in the
71:53 provinces you know they're the
71:54 provincial
71:55 Elites again they constitute really a
71:58 middle class unto themselves like
72:01 artisans for example they have their own
72:03 shop in their own homes and they're
72:05 trying to manufacture something for the
72:07 market outside of the Henda again there
72:10 are Artisans doing that as well they're
72:14 independent cattle ranchers as well
72:16 ceasing land trying to also grow cattle
72:18 for the market and also shopkeepers as
72:21 well again in the small towns scattered
72:24 across Spanish America so this is
72:27 important because this is really Paving
72:29 the road for capitalism you know in uh
72:32 Spanish America in in which we're not
72:36 only see seeing the emergence of a new
72:39 economic system based on markets and
72:41 profits and of course a series of
72:43 producers emerging out of this but also
72:47 a new kind of identification that people
72:50 are no longer identified as members of
72:54 their cast
72:56 you know we talked about the cats system
72:58 in the past you know that's the colonial
73:00 Legacy of Spain dividing the colonist
73:03 along racial categories and identities
73:06 for example separating them
73:09 Etc although people continue to see
73:11 themselves in that light somebody might
73:13 say I'm indigenous for example I'm
73:15 native and so on so forth you know or
73:17 I'm a creole because my parents are
73:21 Spaniards so you know and so on yeah
73:24 it's true but now people are are
73:27 identifying themselves as a member of a
73:29 Class A social class okay mightbe middle
73:33 class might be an upper class for
73:35 example or working class so again we see
73:39 a class system now that is slowly but
73:42 surely replacing the old feudal way of
73:46 identifying People based on cast or race
73:50 in other words so from racial identity
73:52 to class identity is taking
73:55 place in uh in Latin America
73:59 particularly as we're moving into the
74:01 1700s and the 1700s still uh created
74:06 further changes that advanced these
74:09 emerging capist
74:12 system this is happening in the early
74:14 part of the 1700s when we see a change
74:18 in the colonial administration of Spain
74:21 when we see the replacement of the old
74:24 hapsburg
74:25 Dynasty that had ruled Spain for
74:29 centuries and there were the ones
74:30 engaged in the conquest in the initial
74:32 process of colonization they were
74:35 replaced by a new Dynasty that was a
74:38 French Dynasty that is now going to rule
74:40 the Spanish Empire they were known as
74:42 the Bourbons okay the bourbon
74:44 Dynasty and the Bourbons come in and
74:48 they're trying to reamp the entire
74:50 Imperial
74:51 Administration they feel that the
74:54 hapsburgs were quite outdated and that
74:57 the colonies in the new world were not
75:00 really serving the true purpose that
75:02 they should serve in other words that
75:03 they should be productive and they
75:06 should benefit the mother country in
75:08 every possible way that there was this
75:10 very passive
75:12 paternalistic kind of system that was
75:14 still lingering again in Spanish America
75:18 that kept people pretty much in their
75:21 place and that they needed to kind of
75:24 Liberate the e economy in other words
75:26 set it free to a certain degree uh for
75:29 the economy to become even more
75:31 productive to build more more wealth so
75:34 the Bourbons implemented a series of
75:37 economic reforms were known as the
75:40 bourbon reforms and they were really key
75:43 to start really building the very first
75:47 uh Stepping
75:48 Stones uh towards uh a capless
75:52 system they introduced for examp example
75:55 this idea of the free market you know we
75:57 needed a free market in other words uh
76:01 uh in the colonies for example we need
76:03 to liberate more and more create more
76:06 Enterprises in other words okay so
76:08 instead of just having a hand few of
76:12 individuals controlling all the land
76:14 okay uh we need to release that to the
76:18 market so more people can participate
76:21 because what we need is more and more
76:24 Enterprise Rises more and more
76:26 businesses to be more productive in
76:28 other words so they believe in something
76:30 called private property you know uh this
76:33 idea that look you know we need to
76:36 privatize some lands which lands well
76:40 lands that the natives are in control
76:43 you know the indigenous land Holdings
76:44 for example uh and perhaps even some
76:47 lands that the church controls now this
76:50 is not to say that the crown was really
76:52 going against the church what we're
76:53 really trying to do is create a new
76:55 commercial economy a new commercial
76:58 Elite they want to create more and more
77:02 commercial hias in other words not only
77:05 to produce what the colonist
77:08 needed they wanted to maximize exports
77:11 they wanted a new type of Henda in this
77:15 case a Mercantile Henda a Henda that
77:19 will be geared totally for the exports
77:23 of cash crops in other words words for
77:25 Spain you know Spain is really now
77:28 trying to extract the maximum the
77:30 maximum amount of resources and wealth
77:34 out of the land out of agriculture in
77:36 other words so from the Henda that was
77:39 just geared to provide the needed
77:43 resources and products for the domestic
77:46 economy we are seeing the privatization
77:49 of lands particularly Indian lands in
77:52 this case to be given to individuals
77:56 uh land owners commercial land owners
77:59 that will run a commercial Henda for the
78:02 production of things like sugar coffee
78:06 hakin for example and and cotton again
78:10 so this is really leading to another
78:13 wave
78:15 of a commercial revolution that is kind
78:18 of
78:20 introducing uh a capless system of sorts
78:24 in Spanish America again to a certain
78:26 degree and of course that required you
78:29 know uh moving against the village lands
78:33 controlled by the natives undermining
78:37 the Mercedes land grants again that kind
78:40 of protected the communal landh Holdings
78:43 uh of the natives to a certain degree
78:46 and at the same time turning the
78:48 landless peasants into peons again those
78:52 are actually individuals that f into
78:55 debt they have been displaced from the
78:57 lands and because they have nowhere to
78:59 go they must borrow money from a
79:01 landlord for example in order to subsist
79:04 and in order to pay back the debt they
79:06 must work for the landlord in the Henda
79:09 growing things like sugar coffee hakin
79:12 or or cotton for example so again this
79:14 is the rise of P of panich this of
79:17 course this is giving rise to a new type
79:20 of vua SE it's a creole vua SE uh that
79:24 that um again are made up of Spaniards
79:28 born in Spain there so called Creoles or
79:31 Creos that are pretty much becoming more
79:34 and more dominant in the economy it's a
79:37 new Elite but they're not controlling
79:39 industry they're controlling commercial
79:41 agriculture now we have run out of time
79:44 but when we come back we're going to
79:46 proceed with the independence movements
79:49 and from there we're going to start
79:51 looking at modernity itself in Latin
79:53 America and after we cover that uh we
79:57 will be moving into uh part
80:00 two uh to look at Russia again so all of
80:04 that will be explained when we come back
80:06 in session two this is all I have for
80:08 you thank
80:09 you