Pre-Modern Growth: Why It Happened Flashcards

1
Q

Traditional view of why Europe diverged from Asia (7)

(China was….)

A

• Different demographics
• Poor institutions
• Less urban and more commercialised
• Less productive agriculture
• Less innovative - hence lower productivity
Clark’s efficiency, culture and institutions.
• Expensive energy sources

(2 inst ones, 3 LESS, dem, energy)

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2
Q

Clark’s view on ‘efficiency culture and institutions’

A

Local culture-work ethics and effort are key.

Was better in EU so EU>Asia productivity.

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3
Q

Demography focus in China (3)

What is significant about it though? (1)

A

Births and deaths higher in China (1st stage of demo transition- slow population growth, limited economic growth)

Population suffered to due famines (unstable pop)

Lower wages due to institutions governing marriage and fertility. Universal marriage.

Significant as Chinese demographics did not change. Suggesting EU demographics were more important/differed.

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4
Q

Demography focus in EU (3)

A

EU underwent the demographic transition
EU-fertility central
England-nuptiality was central

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5
Q

What is CDR determined by?

A

War, famine, plague etc.

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6
Q

CBR determined by… (2)

A

Fertility rates
Female Age of First Marriage (FAFM)

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7
Q

1.Female age of first marriage (FAFM) in England from 1800–1837 compared to Bangladesh

2.Celibacy rates in England compared to LDCs in 20C, and who confirms both these in his studies?

  1. Relationship of fertility and income. And when did it stop
A

1.High- 23.1 compared to 16 in Bangladesh.

I.e British marrying late.

2.10-15% compared to 0% in LDCs (Hajnal confirms both these)

  1. Income and fertility rose together until 18C (this is what Malthus failed to foresee- market for children QQ)
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8
Q

2 limits/ equilibrium forces against population growth, and how it links to reject Malthusian trap

A

Positive checks-increase mortality (war, plague, famine)
Preventative checks-lower fertility (abstinence, delayed marriage)

This breaks out us out of Malthusian trap, where checks ensure population doesn’t get too high, and eat up growth. (Malthusian trap-Richer, more children, children eat more, levelling out growth)

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9
Q

What checks did Asia and Western EU rely on?

A

Asia-positive (positive for lower income societies)

WEU-preventative (preventative is for higher income societies)

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10
Q

Hajnal’s study

A

Confirmed WEU relied on preventative checks, as WEU had a lower marriage rate and higher FAFM (female age at first marriage)

Area separating WEU from rest of world was called hajnal line.

West was where fertility was low, (preventative)
East fertility was high but countered by high mortality (positive )

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11
Q

Note: graph shows EU countries % of women unmarried is a lot higher. (Preventative checks)

A
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12
Q

Allen’s theory

A

A more elastic CBR key to EU success (responsive to changes in wage).

WEU had higher wages due to preventative checks meaning more in work, higher labour costs spurring industrialisation for promoting labour-saving technology. Solovian growth then followed (tech change K intensive), which then made specialisation (Smithian growth )easier.

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13
Q

Government institutions, China vs EU

A

China was centralised, no institutional tension=no institutional change.

EU was decentralised, powerful aristocracies, churches etc which resulted in more change

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14
Q

What theory explains why governments exist?

A

Theory of Bandits

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15
Q

Theory of Bandits

A

Free rider problem-no incentive to contribute.

Bandits tax people by monopolising theft. They then become stationary and tax regularly as no need to rove anymore. Less tax encourages greater production, and also increases tax revenue for higher output. Stationary bandits provide public goods, so citizens are protected. Everyone benefits.

So stationary bandits>roving bandits=lower tax rate for villagers, higher tax revenue for bandits

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16
Q

Draw the theory of bandits diagram, just stationary and roving bandits

A

It is like a laffer curve. T*(R) is at end of curve as roving bandits tax everything

17
Q

Why is democracy better than stationary bandits? (2 reasons for democracy)

A

Production argument
Competition argument

18
Q

Production argument

A

Society acts as an autocrat.
MB=MC occurs at a lower tax rate

19
Q

Competition argument

A

Leaders have incentive to sacrifice tax revenue to win elections. Then it is competed down to the minimum revenue (almost like a price war between parties)

20
Q

Now draw full theory of bandits diagram including democracy, stationary and roving.

A

Democracy point is at a slightly lower tax rate and revenue than the stationary bandit point.

21
Q

How does Olsen’s government theory explain the Great Divergence? 1 main explanation.

A

EU was fast transitioning towards democracy- England’s glorious revolution (1688)

The timing of this suggests this democracy transition may have caused the great divergence.

22
Q

What was the Glorious Revolution 1688?

A

William of Orange took the throne, at the request of parliament. (Realigned power between parliament and monarchy).

23
Q

What did North and Weingast argue the Glorious Revolution created? (3)

A

Credible property rights
Protection of wealth
The elimination of confiscatory government (gov can’t take stuff from us)

24
Q

Why did the Glorious Revolution happen? (3)

A

Issues between King and Parliament before 1688 (royal finances, judiciary not separate)
Civil war
Charles ousted in 1688

25
Q

Issues between king and parliament: why the GR happened (2)

A

Royal finances e.g how much the king should be payed, out of the taxpayers pocket of course

Judiciary wasn’t a separate branch, royals could punish citizens

26
Q

Charles ousted in 1688

A

William and Mary were offered crown upon conditions of a new constitution (institutional change)

27
Q

Why did the Glorious revolution matter? (2)

A

Governments ability to borrow increased (more confidence as they know money is not just going to King)

State capacity increased-provide more services, employment and investment in infrastructure etc.

28
Q

2 views on why British State capacity mattered (ability to accomplish policy goals)

A

Domestic view-min involvement (laissez-faire)
E.g low tax & regulation, increased property rights

Foreign view-fiscal military state
Use money to expand navy to increase trade opportunity and empire (conquer countries). Facilitated technological change to launch IR

29
Q

Why did China not democratise? (2)

A

High costs of repression, low inequality so no underclass who want revolution!!!