1.

Intro
2.Role of slave trade, and slave labor in British Industrialization
3.Banking, Heavy industry, and Insurance
4.Triangular trade lead to globalization of the economy
5.Critique for Eric Williams
6.Conclusion
1.Intro
Eric Williams, a historian and economist from Trinidad, argued in his book "Capitalism and
Slavery" that the triangular trade and slave-based economy were essential in providing the
foundation for the Industrial Revolution in Europe. Williams' thesis was that profits from the
slave trade and slave labor provided capital accumulation that led to the development of
industrialization in Europe.

The triangular trade involved the transportation of goods from Europe to Africa, slaves from
Africa to the Americas, and raw materials from the Americas back to Europe. The profits from
the sale of goods, slaves and the purchase of raw materials helped to finance the growth of
industries in Europe. According to Williams, the slave trade and the production of slave-grown
products such as sugar and tobacco were the driving forces behind the accumulation of capital
in Europe.
2.Role of slave trade, and slave labor in British Industrialization
The Atlantic slave trade was responsible for the forced migration of millions of Africans to the
Americas. The labor of enslaved Africans was essential in the production of sugar, tobacco, and
other commodities that were in high demand in Europe. The abundant profits from these
products helped to finance the development of industries in Europe.
Williams argued that the profits from the slave trade and slave labor were invested in industry,
not just in Europe, but also in the Americas. He notes that the largest slave societies, such as
those in the Caribbean and Brazil, were also the most profitable for European investors. These
societies were not just producers of raw materials, but they also had significant manufacturing
industries. Williams suggested that the industrialization of the Americas was due to the profits
generated by the slave trade and slavery.

The profits from the slave trade and slave-grown products provided the capital that financed
the development of industries such as textiles. The labor of enslaved Africans was essential in
the development of the cotton industry in Britain. Cotton was a key raw material for the textile
industry, which was one of the driving forces behind the Industrial Revolution. The cotton was
grown in the Americas with the labor of enslaved Africans. The profits from the sale of cotton
helped to finance the development of the textile industry in Britain. The availability of capital
also facilitated the development of transportation infrastructure such as roads, canals, and
ports.
Williams' argument is supported by evidence from the historical record. For example, the
British economy grew rapidly during the 18th century, a period in which the slave trade and
slavery were at their height.
3.Banking, Heavy industry, and Insurance
Eric williams cites examples of major firms -in Banking, Heavy industry, and Insurance sectors-
flourished over the foundation of Atlantic trade. Many of the eighteenth-century banks
established in Liverpool and Manchester were directly associated with the triangular trade.
Here large sums were needed for the cotton factories and for the canals which improved the
means of communication between the two towns. The Heywood Bank was founded in Liverpool
in 1773 and endured as a private bank until 1883, when it was purchased by the Bank of
Liverpool. Its founders had their experience of the African trade besides privateering. The
prominent banker Thomas Leyland, with his partners, was one of the most active slave traders
in Liverpool and his profits were immense. Similarly, The Barclay bank in London and Ship bank
Glasgow derived their capital from african trade.
Heavy industry played an important role in the progress of the Industrial Revolution and the
development of the triangular trade. Some of the capital which financed the growth of the
metallurgical industries was supplied directly by the triangular trade. It was the capital
accumulated from the West Indian trade that financed James Watt and the steam engine. Watt
received advances from Lowe, Vere, Williams and Jennings -later the Williams Deacons Bank-
who played in African trade. One of the leading ironmongers of the eighteenth century, Antony
Bacon, was intimately connected with the triangular trade. In 1765 he set up his iron works at
Merthyr Tydfill using the profit derived from supplying negroes for government contracts in
West Indies.
Triangular trade influenced the setting up and growth of prominent insurance companies.
Lloyd's in London was an example. In 1782 the West Indian sugar interest took the lead in
starting an insurance company, the Phoenix, one of the first companies to establish a branch
overseas—in the West Indies. The Liverpool Underwriters’ Association was formed in 1802.
Chairman of the meeting was the prominent West Indian merchant, John Gladstone.

4.Triangular trade lead to globalization of the economy

Moreover, Williams argued that the triangular trade provided the framework for global
commerce. The slave trade facilitated the exchange of goods and capital between Europe,
Africa, and the Americas. This exchange provided the foundation for the globalization of the
economy. The slave trade and slavery were not just localized phenomena, but they were
integral parts of a global economic system.
5.Critique for Eric Williams
Some scholars, notably Barbara Solow, an economic historian, criticized Eric Williams' argument
that the triangular trade and slave-based economy contributed to the Industrial Revolution.
Barbara Solow, in her article "Caribbean Slavery and British Growth: The Eric Williams
Hypothesis" argued that while Williams' argument had some merit, it was overly simplistic and
failed to consider other factors that contributed to the Industrial Revolution. She noted that the
profits from the slave trade and slave-based agriculture in the Americas were only a small part
of the overall investment in British industry during the period of the Industrial Revolution.
Additionally, Solow argued that the British economy was diversified and had multiple sources of
investment, including investment from overseas.
Solow also pointed out that the slave trade and slave-based agriculture had negative effects on
the British economy. For example, the slave trade disrupted trade patterns and caused social
and economic instability in Africa. Additionally, the reliance on slave labor in the Americas led
to a lack of technological innovation and prevented the development of efficient labor
practices.

Furthermore, Solow argued that the Industrial Revolution was not a sudden and dramatic
event, but rather a gradual process that occurred over a long period of time. She suggested that
the factors that contributed to the Industrial Revolution were numerous and complex, including
advances in agriculture, transportation, and technology, as well as changes in labor practices
and social organization.
6.Conclusion
In summary, Eric Williams argued that the triangular trade and slave-based economy were
essential in providing the foundation for the Industrial Revolution in Europe. The profits from
the slave trade and slave labor provided capital accumulation that led to the development of
industrialization in Europe. Williams' argument is supported by evidence from the historical
record, which shows that the profits from the slave trade and slave-grown products helped to
finance the development of industries in Europe. Additionally, the labor of enslaved Africans
was essential in the production of key raw materials such as cotton, which was vital in the
development of the textile industry. Williams' work provides an important perspective on the
role of slavery in the development of the modern economy.
While Solow acknowledged that the triangular trade and slave-based economy may have
played a role in the development of the Industrial Revolution, she argued that it was only one
of many factors, and that Williams' argument was too simplistic and failed to consider the
complexity of the historical processes involved.