Over 450 years from 1500 to 1945, the major European powers competed with one another over colonies. There were no established global rules until the 20th century. One of the purposes of the monopoly companies was to take colonies from other European powers, it is in this sense that European colonisation was a competitive process. The religious wars and conflicts between states within Europe were replicated across the globe. The Spanish and Portuguese were first off the block in the 15th century, invading and colonising the Americas.

After having outlined in the previous blog the origins of the early monopoly companies, it is now worth pausing to understand how these monopoly companies operated. Divest yourself of any conception you might possess of a trading company today. From their origins, these companies operated like ships of war. They were designed to combat all aggression from any direction: aggression from the people they might meet on landing, from other ships that might wish to steal their cargoes, and from other European monopoly companies that wished to steal their trade.

The so-called National Charter companies were innovative at the time. They were financed from private sources, allowed to arm themselves for protection, and they set out to control the trade they could muster. The East India companies avoided the Ottomans, sailed around the Cape to India, and began to set up local agreements and build forts. Each of the new European companies rapidly discovered that the Indian and Chinese governments did not want to obtain what Europe had to offer, rather they felt themselves to be self-sufficient.

Racial chattel slavery, as practised in the North and South Americas over four centuries, represented bondage not seen before at new levels of human inferiority and violence. European chattel slavery required two elements which on the whole was not present in earlier forms of slavery; private ownership and racism. Only under the ideology of European racism could chattel slavery exist in the extreme from that it took. Chattel slavery was the ownership of one person by another as a form of property; it became prerequisite for plantation settlement for sugar and coffee - the beginnings of industrial capitalism.