1 00:00:05,910 --> 00:00:09,150 I think in some ways I should have been in the last session and Congress should have been in this 2 00:00:09,150 --> 00:00:16,650 session because we already broached the environment and I'm not going to be talking about it much. 3 00:00:16,650 --> 00:00:25,950 What I really want to stress is the idea that we've tended to think of deindustrialisation as an established fact in the 19th century, 4 00:00:25,950 --> 00:00:28,830 which I think is basically incorrect. 5 00:00:28,830 --> 00:00:35,580 I think there is a really interesting question which remains which is there was industrialisation everywhere in the world, 6 00:00:35,580 --> 00:00:41,970 but could it have been greater? This is, to my mind, is a much more interesting question than the deindustrialisation. 7 00:00:41,970 --> 00:00:47,100 One gene to when I said this to him in Lausanne got really annoyed with me. 8 00:00:47,100 --> 00:00:53,400 And this is kind of old style and dependency theory idea of deindustrialisation. 9 00:00:53,400 --> 00:00:59,910 I think there is a sense that the West may have prevented the creation of modern industry. 10 00:00:59,910 --> 00:01:05,430 And the question is, does it do it through colonialism? Does it do it through soft power? 11 00:01:05,430 --> 00:01:11,190 And Kyra, of course, has shown that writing the rules of the game doesn't always go the way you expect it. 12 00:01:11,190 --> 00:01:18,150 And that in many ways, free trade in Asia benefits in Japan much more than it benefited those who wrote those rules. 13 00:01:18,150 --> 00:01:23,700 But this is the soft power model. Now what do I mean by industry? 14 00:01:23,700 --> 00:01:28,980 I got caught up with this by Maxine Berg, who I think she's here, 15 00:01:28,980 --> 00:01:35,460 but I gave a version of this paper in Warwick, and so I'm not sure that I've got a good definition. 16 00:01:35,460 --> 00:01:40,320 I think these three ideas we talked about energy already machinery factories. 17 00:01:40,320 --> 00:01:47,070 The trouble is that these things you can find in different combinations at different times, in different places. 18 00:01:47,070 --> 00:01:55,500 I've tried, I'm doing as a case study of the Philippines trying to look at industrialisation in the late Spanish period in the 19th century, 19 00:01:55,500 --> 00:02:00,390 and I tried to use installed horsepower as a kind of rough index. 20 00:02:00,390 --> 00:02:07,590 But the trouble is that even the Americans with their efficient census of 1982 to three, they asked the question to everybody. 21 00:02:07,590 --> 00:02:11,460 And roughly half or more of the people didn't answer the question. 22 00:02:11,460 --> 00:02:16,440 So we don't have what I hoped would be a kind of benchmark of the end of the Spanish period. 23 00:02:16,440 --> 00:02:20,610 This is what we all expect factories to look like on modern industries look like. 24 00:02:20,610 --> 00:02:30,360 And of course, half the time it doesn't. Then there's been a recent shift from the kind of job to type dependency theory to Jeffrey Williamson, 25 00:02:30,360 --> 00:02:34,110 who's arguing it's not really imperialism, whether soft or hard. 26 00:02:34,110 --> 00:02:41,340 It's really free trade, because the terms of trade favoured are Ontario's labour moved into that sector. 27 00:02:41,340 --> 00:02:43,770 I think that's that's true. That's quite a good point. 28 00:02:43,770 --> 00:02:49,650 But then he argues that that involves lower skills, lower productivity and higher price volatility. 29 00:02:49,650 --> 00:02:58,410 So this is his book. I think we spoke a little bit about books which engender debate, but which are not terribly good. 30 00:02:58,410 --> 00:03:07,050 I would say this is in that category. I quite strongly disagree with virtually everything, he says, but it is quite it's quite a provocative book. 31 00:03:07,050 --> 00:03:14,610 And yes, Jeff himself, of course, has taken part in some of the deliberations of organised by Patrick. 32 00:03:14,610 --> 00:03:21,540 So our problems with Jeff's thesis. One of them, which I'd like to encourage you to look at more, is the question of futures markets. 33 00:03:21,540 --> 00:03:26,070 A lot of the price volatility is hedged by the emergence of futures markets. 34 00:03:26,070 --> 00:03:31,020 And of course, it's true that direct producers don't often have access, particularly peasants. 35 00:03:31,020 --> 00:03:35,850 Nevertheless, the people who they sell to the merchants do have access to futures markets, 36 00:03:35,850 --> 00:03:41,820 and the question of volatility then is, I think, more complicated than Williamson says. 37 00:03:41,820 --> 00:03:45,930 I also think that the labour productivity thing is a chicken and egg problem. 38 00:03:45,930 --> 00:03:49,890 I think in many ways there is low productivity in the global south. 39 00:03:49,890 --> 00:04:01,620 But is it a result of moving into primary production or is it a cause of I mean, is there are there other causes rather which lower productivity? 40 00:04:01,620 --> 00:04:09,090 We all know about stinginess of colonialism, but one of the things which I've been struck by my own work is how colonialism was actually 41 00:04:09,090 --> 00:04:13,350 quite often less stingy in the provision of public goods than independent states. 42 00:04:13,350 --> 00:04:19,410 I've done a comparison between the Gold Coast of modern Ghana and Bahia in Brazil, and my God, 43 00:04:19,410 --> 00:04:23,040 the Brazilian authorities were a lot stronger than the Gold Coast authorities in terms 44 00:04:23,040 --> 00:04:28,860 of providing anything at all for the taxes that they screwed out of the coca producers. 45 00:04:28,860 --> 00:04:32,640 Oops. Sorry, wrong one. 46 00:04:32,640 --> 00:04:41,430 So this is a monument to the first known futures markets in rice futures markets in Japan, surprisingly early, many ways under the 17th century. 47 00:04:41,430 --> 00:04:50,130 There is a slight countervailing current, and I'm a very great fan of Ken Pomerantz is not the great divergence, 48 00:04:50,130 --> 00:04:55,770 but the Pacific in the age of early industrialisation, which is the edited collection by Ken, 49 00:04:55,770 --> 00:05:00,080 which I think actually is a very good set of studies show. 50 00:05:00,080 --> 00:05:06,500 How you get industrialisation occurring right around the world from the early 19th century, 51 00:05:06,500 --> 00:05:13,340 this is the book itself with a very unexciting Rutledge cover, which Routledge seems to specialise in. 52 00:05:13,340 --> 00:05:22,490 So one sort of strand of this is the question of artisans, and we all know the idea that artisans are ruined. 53 00:05:22,490 --> 00:05:30,920 Karl Marx is famous statement cos Karl Marx have never been to India, so he didn't see the bones of the cotton weavers. 54 00:05:30,920 --> 00:05:34,040 But this is the sort of person we're talking about. 55 00:05:34,040 --> 00:05:40,310 And if you put in deindustrialisation, if you type it into the internet, this is the image that springs up. 56 00:05:40,310 --> 00:05:45,980 So they've gone from producing cotton cloth, being the workshop of the world to producing raw cotton. 57 00:05:45,980 --> 00:05:49,880 Now this cotton is almost certainly industrially baled. Right? 58 00:05:49,880 --> 00:05:55,850 So it's actually a very bad illustration of the idea that you get a complete wipe out. 59 00:05:55,850 --> 00:06:01,640 In fact, as to funk art, of course, is very famously shown. Artisans don't disappear. 60 00:06:01,640 --> 00:06:10,220 They this is also true elsewhere. So this is your tanker's book, which I think is an extremely important milestone in this. 61 00:06:10,220 --> 00:06:15,170 But we've got other ones. We've spoken very little about the Middle East at this conference, I think is a bit unfortunate. 62 00:06:15,170 --> 00:06:24,860 The Middle East has been largely left out, but we get a similar process sent by Syria for anarchy by part of IS, maybe for Iran again, 63 00:06:24,860 --> 00:06:35,930 very important and very under use book because you wrote in French and not as French is no longer really much of a second language and most recently, 64 00:06:35,930 --> 00:06:42,050 this, this author's being quoted earlier for something else. But this is just come out on the history of chin crafts now. 65 00:06:42,050 --> 00:06:47,300 Crafts that's fairly loaded word in its own right now. 66 00:06:47,300 --> 00:06:50,720 It's undoubtedly the fact that some artisans were negatively affected. 67 00:06:50,720 --> 00:06:56,780 But of course, the point is that weavers actually benefited from the rise of cheap, reliable factory made threads. 68 00:06:56,780 --> 00:07:04,070 So we get a kind of dual situation where spinning goes backwards, but weaving develops. 69 00:07:04,070 --> 00:07:10,850 Much less known, I think, is in fact, the dyes and embroideries benefited from the creation of cheap factory made cloth. 70 00:07:10,850 --> 00:07:16,510 I've looked at this for batik, for instance, and for embroidery batik in Indonesia, 71 00:07:16,510 --> 00:07:20,300 embroidery in the Middle East, and we get exactly the same pattern. 72 00:07:20,300 --> 00:07:21,620 And most interesting of all, 73 00:07:21,620 --> 00:07:30,310 I think in years tanker's book is the the idea that certain artisans turn into industrialists slowly by kind of process of osmosis. 74 00:07:30,310 --> 00:07:39,950 And I think his case study of the brass in Moradabad, near Delhi, this is one of these workshops, which, you know, looks very traditional. 75 00:07:39,950 --> 00:07:48,290 But the fascinating thing is that they invest in machinery in energy and become really particularly in the Second World War, 76 00:07:48,290 --> 00:07:52,580 come off to become really important industrialists. 77 00:07:52,580 --> 00:07:57,620 We also tend to underestimate the industrialisation of services because we always think that we do have to be talk-, 78 00:07:57,620 --> 00:08:04,700 we're talking about tangible goods. But in fact, what we find is the service sector from the 19th century diverges quite strongly. 79 00:08:04,700 --> 00:08:12,170 Bits of the service sector become very highly industrialised and the repair and maintenance workshops for 80 00:08:12,170 --> 00:08:20,390 this newly industrialised services transport services very often turn into industrial enterprises over time. 81 00:08:20,390 --> 00:08:29,330 I think it's how Dick has looked at this for Indonesia, where you get the shift from repair and maintenance into manufacturing. 82 00:08:29,330 --> 00:08:35,190 This is, you know, fairly obvious pictures, although this one is interesting because this is a railway which had very little economic benefit. 83 00:08:35,190 --> 00:08:43,670 This is really to justify the Ottoman sultan continuing as the Khalifa of the faithful. 84 00:08:43,670 --> 00:08:48,920 This is, of course, a service sector which is very slow to industrialise, and nowadays it has industrialise. 85 00:08:48,920 --> 00:08:55,310 But you could argue that it's very retarder kind of sector. 86 00:08:55,310 --> 00:09:03,440 But the thing I'm most interested in is the is the export substitution industrialisation through the processing of so-called raw materials. 87 00:09:03,440 --> 00:09:09,710 And I think this is one of the areas we've got to be really careful with our language. We use this term raw materials all the time. 88 00:09:09,710 --> 00:09:16,160 And if you look at them, they're often not very raw at all. And they're increasingly less raw. 89 00:09:16,160 --> 00:09:21,800 So that all this emphasis on finished consumer goods, I think, needs to be thrown out the window. 90 00:09:21,800 --> 00:09:24,950 That's not really what's important at the beginning of the 19th century. 91 00:09:24,950 --> 00:09:33,980 It's the adding of value through and through industrial investment in so-called raw materials, sometimes also industrially extracted. 92 00:09:33,980 --> 00:09:40,610 This is an early photograph of gold mines in South Africa, where industrialisation is going to the actual extraction process. 93 00:09:40,610 --> 00:09:49,820 But most of the times to South Africa again, the industrialisation is occurring at the processing stage, the extraction of gold from the oil. 94 00:09:49,820 --> 00:09:56,660 So we get all sorts of reasons, perhaps for this industrialisation to occur, some of which are technical. 95 00:09:56,660 --> 00:10:02,270 And that's all. That said, not to change the argument. You have to process stuff because it spoils. 96 00:10:02,270 --> 00:10:06,770 Right? I've worked on a number of different commodities where if you don't process them quickly, 97 00:10:06,770 --> 00:10:16,820 they're basically either dropped completely like meat and fish, or they become less effective in whatever they're meant to be doing. 98 00:10:16,820 --> 00:10:22,110 Also, to save transport costs of certain materials are very expensive transport, 99 00:10:22,110 --> 00:10:26,600 and if you process them at source, you actually reduce your transport costs very considerably. 100 00:10:26,600 --> 00:10:30,470 This is quite an interesting pick, just as from vector-borne of Thomas's history, 101 00:10:30,470 --> 00:10:35,780 when we get the real factory in the field, the sugar factory in the field and of course, with the locomotive in front. 102 00:10:35,780 --> 00:10:43,010 And Cuba is one of the most precocious areas in the world in the adoption of new industrialised transport services, 103 00:10:43,010 --> 00:10:48,620 which I think is often forgotten by which John Kerry Machado, for instance, says this is true came grinding. 104 00:10:48,620 --> 00:10:55,310 You can see what how sugarcane really is a factor in the field. Sugar packing is in colonial Taiwan. 105 00:10:55,310 --> 00:11:00,920 The Japanese had earlier developed sugar. This is a very interesting picture of a tea lost factor. 106 00:11:00,920 --> 00:11:07,610 I think this is in Java and actually being able to. You can see the the steam machinery right at the front. 107 00:11:07,610 --> 00:11:11,630 But a lot of this is actually not machine based industry. 108 00:11:11,630 --> 00:11:17,690 It's actually just providing loads of rooms in which you can do various things to the tea leaf. 109 00:11:17,690 --> 00:11:26,510 This is a modern examples from Mozambique cashew processing and meat and fish, I think often forgotten in this kind of non spoiling. 110 00:11:26,510 --> 00:11:35,780 Now we've got a real problem with statistics. I think one of the reasons why some of this has gone unnoticed is that customs service is right 111 00:11:35,780 --> 00:11:42,620 around the world tend to be quite conservative in the labelling of certain categories of goods. 112 00:11:42,620 --> 00:11:45,320 And once these established, they tend to go on forever. 113 00:11:45,320 --> 00:11:51,650 Although to be fair to customs authorities, they often introduced various footnotes and various subdivisions, 114 00:11:51,650 --> 00:11:59,850 which historians have rather cavalierly, I think, ignored. So this is a Spanish import statistics in which you get really interesting. 115 00:11:59,850 --> 00:12:08,510 I can't see a sorry bad photograph, but I think, ah, the cover is that's a highly processed, highly industrially processed good. 116 00:12:08,510 --> 00:12:12,500 And then we have cocoa in Ghana, which is virtually unprocessed, 117 00:12:12,500 --> 00:12:19,250 and the two are put in exactly the same category within the Spanish import statistics in 1898. 118 00:12:19,250 --> 00:12:22,610 This is another one of my famous examples. 119 00:12:22,610 --> 00:12:31,670 So creating factory in Japan, the product of this, which I think is so jam, is always, always called raw silk. 120 00:12:31,670 --> 00:12:33,500 There's nothing raw about this at all. 121 00:12:33,500 --> 00:12:42,920 I mean, this really is a crazy piece of of labelling, but really quite reputable historians have fallen into this trap of calling this raw silk. 122 00:12:42,920 --> 00:12:51,140 It's not. It's not raw. We have a real problem, which I'd be really glad of getting some help with, 123 00:12:51,140 --> 00:12:56,030 which is why the same commodities process to differing degrees in different places. 124 00:12:56,030 --> 00:13:02,570 I think there's a number of possible reasons for this. I don't think distance to markets which have been put forward is actually very important. 125 00:13:02,570 --> 00:13:11,330 But I think the available factors of production for setting up modern factory industry are probably much more important. 126 00:13:11,330 --> 00:13:17,870 So some extent colonies of rich or poor countries are important to this has to do with the degree of protectionism. 127 00:13:17,870 --> 00:13:25,130 So I give you the example here this is cassiterite sound, which is exported as such from the Jos Plateau in Nigeria. 128 00:13:25,130 --> 00:13:30,260 Instead of making it into tin, this is tin smelting in Australia. 129 00:13:30,260 --> 00:13:33,350 You can see what large scale industrial process this involves. 130 00:13:33,350 --> 00:13:40,250 Another example this is from Belize, where you're doing all the fashioning of the timber by hand. 131 00:13:40,250 --> 00:13:47,210 This is a Japanese electric sawmill in East Sumatra and exactly the same period where you've got a really high degree of mechanisation. 132 00:13:47,210 --> 00:13:47,930 And interestingly, 133 00:13:47,930 --> 00:13:57,080 the use of electricity in Indonesia is actually quite a pioneer in the use of electricity for manufacturing for reasons which are not entirely clear. 134 00:13:57,080 --> 00:14:02,270 So one of the reasons for this then, particularly in poorer and more backward metropolises, 135 00:14:02,270 --> 00:14:07,190 is that workers tried to stop colonial processing to save their jobs at home. 136 00:14:07,190 --> 00:14:15,890 Senegalese groundnuts a good example of this you can't press them into oil in Dakar because the workers in Marseilles want to keep their jobs. 137 00:14:15,890 --> 00:14:20,090 So here we have the ground not ready for export in which risk. 138 00:14:20,090 --> 00:14:24,740 And this is an early 19th century Marseilles soap factory. Interestingly, of course, 139 00:14:24,740 --> 00:14:32,600 moving from olive oil olive oil used to be the reason why there was certain manufacturing in this area to imported colonial groundnuts. 140 00:14:32,600 --> 00:14:40,190 So this export substitution industrialisation that I think is hugely benefited by free trade. 141 00:14:40,190 --> 00:14:43,250 The real economies of scale for the world market. 142 00:14:43,250 --> 00:14:51,890 Australia succeeds essentially on World Japan, as we had earlier, essentially on tea and silk better process than their Chinese rivals. 143 00:14:51,890 --> 00:14:57,350 I was interested to hear from currency was largely with firewood and charcoal, which I didn't know. 144 00:14:57,350 --> 00:15:00,350 It's just early stages of Japanese manufacture. 145 00:15:00,350 --> 00:15:08,870 This is a tea factory in Japan and tea labels, this is tea labels showing that some of the markets for Japanese tea were in North Africa, 146 00:15:08,870 --> 00:15:11,510 which is something I'm working on at the moment. 147 00:15:11,510 --> 00:15:18,530 Consumer goods, I think, are more effects for some consumer goods industrialisation from the early 19th century. 148 00:15:18,530 --> 00:15:26,240 But it's unusual. Indian case, which is ignored by Williamson, is largely a story of Indian yarn. 149 00:15:26,240 --> 00:15:33,170 Replacing British yarn in the Indian Ocean and Chinese sea markets have been then replaced by Japanese yarn and its term. 150 00:15:33,170 --> 00:15:42,290 Early textile mill in India, a certain amount of pretty uncompetitive consumer goods and ISI pushed through by settlers. 151 00:15:42,290 --> 00:15:45,710 Example from South Africa. 152 00:15:45,710 --> 00:15:51,350 And then we got the second period, which Williamson sees as a more positive period for industrialisation was, I think, in many ways, 153 00:15:51,350 --> 00:16:01,280 much more negative period when free trade collapses and nationalism becomes obsessed with import substitution industrialisation of consumer goods. 154 00:16:01,280 --> 00:16:07,790 Kwame Nkrumah in the gold has been a very good example of this. What we get then, is a very poor quality industry. 155 00:16:07,790 --> 00:16:14,330 It's poorly planned, poorly coordinated, badly integrated with artisans, very badly sighted. 156 00:16:14,330 --> 00:16:21,800 This is hashtag has some of the best critiques of particularly Turkish siting of import substitution industrialisation, 157 00:16:21,800 --> 00:16:29,780 which is just mind bogglingly crazy. And of course, we get better about my neighbour policies, which the most famous example is India. 158 00:16:29,780 --> 00:16:37,760 Setting up a sugar industry against Java basically through protectionist methods is a large sugar factory in colonial Java, 159 00:16:37,760 --> 00:16:45,140 and this is a sugar factory in India. Catalysts are, I think, terribly divided coming to capitalism at last. 160 00:16:45,140 --> 00:16:53,060 Metropolitan manufacturers the musées argument inefficient, declining sectors essentially tried to stop colonial industrialisation. 161 00:16:53,060 --> 00:16:59,390 Entrepreneurs and dynamic sectors think of developing it with the French thinking of Vietnam as a new Japan. 162 00:16:59,390 --> 00:17:06,440 This is Ramos's book is 1984 long time ago and yet in many ways, perhaps it's written in French again. 163 00:17:06,440 --> 00:17:13,700 Same problem has had less of an impact than myself expected. Jacques Marseille, a former Communist Communist militant, 164 00:17:13,700 --> 00:17:21,920 also noted that workers in the West were a very important group in trying to damp down colonial industrialisation in a time, 165 00:17:21,920 --> 00:17:25,160 of course, of growing structural unemployment. 166 00:17:25,160 --> 00:17:33,290 And Lenin argued in a slightly different vein, actually, that workers at home in the tropics were bribed by distribution of surplus value. 167 00:17:33,290 --> 00:17:37,490 But I think it that I say raise this really interesting question is to what extent organised 168 00:17:37,490 --> 00:17:42,920 labour was responsible for slowing down the industrialisation of the Third World. 169 00:17:42,920 --> 00:17:46,700 This is the take in long term sugar refinery. Why not refine? 170 00:17:46,700 --> 00:17:50,290 Why did you go through all these processes except refining a source? 171 00:17:50,290 --> 00:17:59,090 And this is the Iron Tin smelter of the built on supply, which caused great problems for the Malaysian Peninsula tin smelters, 172 00:17:59,090 --> 00:18:05,120 which were at that time already exporting tin as ninety nine point six per cent pure tin metal. 173 00:18:05,120 --> 00:18:12,620 So in conclusion, then I'm arguing against Jeffrey Williamson and saying that, eh, there was much more manufacturing than we thought. 174 00:18:12,620 --> 00:18:17,070 B that actually his periodisation is completely the wrong way round. 175 00:18:17,070 --> 00:18:26,000 The free trade period was a much better period than the final collapse of free trade, but I think we do need to do the spadework. 176 00:18:26,000 --> 00:18:31,130 We need to look at actual rates as far as possible of industrial growth in the global south. 177 00:18:31,130 --> 00:18:38,180 And we need to bear in mind that Massey's very productive, important contribution on the role of Western labour. 178 00:18:38,180 --> 00:18:42,280 Thank you.