1
KENYATTA UNIVERSITY
HISTORY MODULE
AHT 338: WORLD ECONOMIC SYSTEMS TO 1914
, 2
INTRODUCTION
This module specifically introduces students to aspects of world economic history. Its
aim is to explore the history of various world economic systems up to 1914. Ideally, the
historical period under study is limited to an examination of pre-capitalist economic
systems and their relationship with world capitalism. This background history on pre-
capitalist economic systems lays some sound ground on which an analysis of world
capitalism and socialism emerge as formidable economic systems in world history. The
aim of this module therefore is to provide students with a detailed understanding of the
origin, development and structural manifestations of different pre-capitalist world
economic systems. Entailed in this is a critical analysis of their distinguishing features
and relations of production within them. The module also discusses in detail the rise and
development of capitalism, colonial and semi-colonial periphery of world capitalism. Key
interesting and provocative examples are mainly drawn from the African continent to
provoke thought and discussion among students. Each chapter has an introduction section
that introduces the students to the wider scope of what is to be expected in the content
matter. The chapters also have objectives, activities and questions. The latter are aimed at
making it easy for the students to prepare, explore and also assess their understanding of
the principal concepts covered. The writers of this module would like to express their
appreciation to members of the Department of History, Archeology and Political studies
at Kenyatta University for their invaluable input. Special mention should be made to
Professor Eric M. Aseka and Danson P.L. Esese, Lecturers who for many years have
taught Economic history in the Department and whose overwhelming resources helped in
shaping the direction of the module.
, 3
LESSON ONE
1.0 MEANING AND SCOPE OF WORLD ECONOMIC SYSTEMS
1.1 Introduction
In this lesson, we discuss the meaning of economic systems generally and the scope of
the course specifically. This introductory lesson aims at preparing students for the
subsequent lessons that follow. It does this by first highlighting on the context of world
economic systems and the subject content for the entire module.
1.2 Objectives
By the end of this lesson, students should be able to:
Demonstrate an understanding of the meaning of economic systems
Identify the various types of economic systems in world history
Make a distinction between pre-capitalist and capitalist economic systems
1.3 Content
Economic systems are forms of social organizations for producing goods and services
and for determining how they will be distributed. Examples of such systems include
Communal, Capitalist, Feudalism, Fascism and Socialist.
Economic historians including Karl Marx, F. Engels, V. Lenin and W.W. Rostow have
broadly outlined a general trend in which, it is presumed, societies follow in their
development. Each society, it is assumed, evolves from a simple economic organization
to a more advanced one. The duty of economic historians therefore is to examine such
developments over time and to identify key distinctions within various economic
organizations. In the preface of his work ‘The Critique of Political Economy,’ Karl Marx
for example wrote “In broad outlines, Asiatic, ancient, Feudal and Modern bourgeoisie
Modes of Production can be designated as progressive epochs in the economic formation
, 4
of society’’. Other scholars including W.W. Rostow, in his book Stages of Economic
growth have identified primitive communism or the communal form of society as the
earliest form of economic formation. Its end is also presumed to be communism.
In this schema, societies are conceptualized as consisting discrete stages through which
they must inevitably move on their path to self-redemption and perfection. Each of these
stages is presumed to have principal defining characteristics, which distinguishes each
from the other. But as a society evolves from one stage to another it is assumed that
elements of one stage exist in the other.
Note:
We should however bear in mind that most of the societies being discussed are
western (including European and North American) societies with little to do with
the rest of the world including Africa. Although emerging literature is now
focusing on the history of African economic systems, what is mainly justified is
the economic superiority of Western Europe vis-à-vis the rest of the world. The
African component in the literature needs to be infused and emphasized. Like
other parts of the world Africa before the coming of Europeans possessed
economic systems that were viable, dynamic and vibrant.
Two economic systems have for long remained in vogue in scholarly circles i.e.
capitalism and socialism. Before the collapse of the Soviet Union in the 1990’s for
instance the world had witnessed decades of a gruelling cold war rivalry between Russia
and her allies (the East) on the one hand and the U.S.A. and her allies (the West) on the
other.
The ideological rivalry between these two super power camps also entailed an economic,
strategic and military competition. Russia’s communist political ideology was rooted in
socialist ideals while America’s democratic political ideology was rooted in capitalist
economic principles and practices.
KENYATTA UNIVERSITY
HISTORY MODULE
AHT 338: WORLD ECONOMIC SYSTEMS TO 1914
, 2
INTRODUCTION
This module specifically introduces students to aspects of world economic history. Its
aim is to explore the history of various world economic systems up to 1914. Ideally, the
historical period under study is limited to an examination of pre-capitalist economic
systems and their relationship with world capitalism. This background history on pre-
capitalist economic systems lays some sound ground on which an analysis of world
capitalism and socialism emerge as formidable economic systems in world history. The
aim of this module therefore is to provide students with a detailed understanding of the
origin, development and structural manifestations of different pre-capitalist world
economic systems. Entailed in this is a critical analysis of their distinguishing features
and relations of production within them. The module also discusses in detail the rise and
development of capitalism, colonial and semi-colonial periphery of world capitalism. Key
interesting and provocative examples are mainly drawn from the African continent to
provoke thought and discussion among students. Each chapter has an introduction section
that introduces the students to the wider scope of what is to be expected in the content
matter. The chapters also have objectives, activities and questions. The latter are aimed at
making it easy for the students to prepare, explore and also assess their understanding of
the principal concepts covered. The writers of this module would like to express their
appreciation to members of the Department of History, Archeology and Political studies
at Kenyatta University for their invaluable input. Special mention should be made to
Professor Eric M. Aseka and Danson P.L. Esese, Lecturers who for many years have
taught Economic history in the Department and whose overwhelming resources helped in
shaping the direction of the module.
, 3
LESSON ONE
1.0 MEANING AND SCOPE OF WORLD ECONOMIC SYSTEMS
1.1 Introduction
In this lesson, we discuss the meaning of economic systems generally and the scope of
the course specifically. This introductory lesson aims at preparing students for the
subsequent lessons that follow. It does this by first highlighting on the context of world
economic systems and the subject content for the entire module.
1.2 Objectives
By the end of this lesson, students should be able to:
Demonstrate an understanding of the meaning of economic systems
Identify the various types of economic systems in world history
Make a distinction between pre-capitalist and capitalist economic systems
1.3 Content
Economic systems are forms of social organizations for producing goods and services
and for determining how they will be distributed. Examples of such systems include
Communal, Capitalist, Feudalism, Fascism and Socialist.
Economic historians including Karl Marx, F. Engels, V. Lenin and W.W. Rostow have
broadly outlined a general trend in which, it is presumed, societies follow in their
development. Each society, it is assumed, evolves from a simple economic organization
to a more advanced one. The duty of economic historians therefore is to examine such
developments over time and to identify key distinctions within various economic
organizations. In the preface of his work ‘The Critique of Political Economy,’ Karl Marx
for example wrote “In broad outlines, Asiatic, ancient, Feudal and Modern bourgeoisie
Modes of Production can be designated as progressive epochs in the economic formation
, 4
of society’’. Other scholars including W.W. Rostow, in his book Stages of Economic
growth have identified primitive communism or the communal form of society as the
earliest form of economic formation. Its end is also presumed to be communism.
In this schema, societies are conceptualized as consisting discrete stages through which
they must inevitably move on their path to self-redemption and perfection. Each of these
stages is presumed to have principal defining characteristics, which distinguishes each
from the other. But as a society evolves from one stage to another it is assumed that
elements of one stage exist in the other.
Note:
We should however bear in mind that most of the societies being discussed are
western (including European and North American) societies with little to do with
the rest of the world including Africa. Although emerging literature is now
focusing on the history of African economic systems, what is mainly justified is
the economic superiority of Western Europe vis-à-vis the rest of the world. The
African component in the literature needs to be infused and emphasized. Like
other parts of the world Africa before the coming of Europeans possessed
economic systems that were viable, dynamic and vibrant.
Two economic systems have for long remained in vogue in scholarly circles i.e.
capitalism and socialism. Before the collapse of the Soviet Union in the 1990’s for
instance the world had witnessed decades of a gruelling cold war rivalry between Russia
and her allies (the East) on the one hand and the U.S.A. and her allies (the West) on the
other.
The ideological rivalry between these two super power camps also entailed an economic,
strategic and military competition. Russia’s communist political ideology was rooted in
socialist ideals while America’s democratic political ideology was rooted in capitalist
economic principles and practices.
