reading 5 (week 3) Flashcards

1
Q

Great divergence

A
  • up to the 19th century Europe was not different economically than the rest of the world

= 19th century: Western Europe and part of North Africa had become wealthy, almost everywhere else poor

When did it start? = debated (some saying it really took off around 1800), it’ll probs never be resolved

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2
Q

Karl Marx inventions that ‘‘ushured in bourgeois society’’

A

!!!were not European inventions: all probably are invented in Europe

  • gunpowder
  • compass
  • printing press
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3
Q

causes great divergence

  • 3 alternative explanations
A
  • Cultural Factors / superiority (rejected by other historians) = e.g. Weber, Sowell
  • Plundering and pillage of foreign lands (alternative cultural explanation = e.g. Blaut

= debate: Europe as beacon of progress vs as ruthless thief

  • non-cultural explanations e.g. Diamond, Mokyr, Acemogly
    *Mokyr: causes are ‘‘overdetermined’’: many contributed , no factor was enough to account for the divergence on its own
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4
Q

conclusion Great Divergence

A

cultural explanations for booms and busts are tempting, but economic history shows that they rarely stand up to scrutiny

  • e.g. idea that Greece is lazy and therefore has a relatively weak eco, but OECD shows Greeks work more than most others in rich countries
  • e.g. high productivity India ascribed to work ethic, but now eco. falters -> argument out of use
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5
Q

Cultural explanations (superiority) Great Divergence

A
  • Weber: religious factors (Calvinism encouraged Europeans to be thrifty, rational, and concerned with material gain + such values didn’t exist outside of Europe, acc to Weber)
  • Thomas Sowell: Britain invented freedom + other countries coppied its eco development
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6
Q

Plundering and pillage of foreign lands (alternative cultural explanation Great Divergence

A
  • James Blaut: 1492 (Columbus in America) = breakpoint different evolutionary epochs (Europe started exploiting + holding back the rest of the world)
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7
Q

non-cultural explanations Great Divergence

A
  • Jared Diamond: environmental factors (domesticable plants and animals + population more immune to diseases -> high productivity + higher population density -> development of institutions (e.g. cities) that contributed to eco. growth
    *is criticized for ‘‘environmental determinsim’’
  • Joel Mokyr: many different factors played a role : environment, development open science 16th century (spread eco. useful ideas), affection for capitalism, affection for colonialism
    he argues: causes are ‘‘overdetermined’’: many contributed , no factor was enough to account for the divergence on its own
  • Gregory Clark: disease picked off Britain’s poor -> steadily more competent and productive population -> self-sustaining growth of the industrial revo)
  • Daron Acemogly + James Robinson: Glorious revolution Britain 1680s -> less power monarch -> more incentive to make money (as monarch couldn’t take it)

*Mokyr: Great Divergence not simply caused by European culture, it emerged because a business-friendly, open and innovative economy was created - mostly by accident

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8
Q

from what point on can we speak about a single, hegemonic European ‘‘core’’

*start article 2: Pomeranz, Kenneth

A

only after 19th century industrialization was well advanced

before that: resemblances between western Europe and other areas means we cannot understand pre-1800 global conjunctures in terms of a Europe-centered world system, there was a polycentric world with no dominant center

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9
Q

most existing literature either/or framework:

A
  • Europe-centered world system carrying out essential primitive (i.e. only the beginning of large scale accumulation (Marx)) accumulation overseas
  • endogenous European growth (exclusively internal focus)

with these 2 options, most scholars go for the second

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10
Q

how has recent scholarship in European economic history generally reinforced an exlusively internal focus?

  • 3 ways
A
  1. research has found well-developed capitalist institutions further and further back in time (even during feudal period, which is often seen as anti-thesis capitalism)
    ! this reinforces the idea that Europe’s successful path began before its overseas expansion
  2. the more market dynamics appear in medieval culture and institutions, the more tempting it becomes to make market-driven growth the entire story of European development (ignoring messy details, local customs etc.) -> less attention to coercion overseas (as that’s far from the main story in Europe)
  3. treating the Industrial Revolution as European phenomenon rather than a British one spreading across Europe (given the finding of an ongoing process of commercialization (see nr. 1))
    -> focus on Europe alone + only on the model of free, competing economy
    -> shape units of analysis: we use contemporary nation-states, whilst e.g. India and China would be better compared with Europe as a whole

makes it seem that Europe’s overseas expansion is a minor matter + that empire may be explained by (economic) superiority, but has little to do with creating it

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11
Q

looking to Europe as a whole and then how Britain is distinct

  • an approach
A

traditional way of comparing regions by their continental or ‘‘civilizational units’’ is problematic

we should compare scattered core regions that share similar characteristics
by doing this, we can look for absences, accidents, and obstaclees that diverted England from a path that might have made it more like other regions (e.g. Yangzi Delta, the Netherlands, Gujarat)

so don’t look at random units/countries, look at similar ‘‘core units’’

= confront biased comparisons by trying to produce better ones

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12
Q

Wong + Kenneth - approach to comparison/analysis great divergence

= reciprocal comparative method / two-way comparisons

A

= confront biased comparisons by trying to produce better ones

view both sides of the comparison as ‘‘deviations’’, through the expectations of the other rather than leaving one as always the norm

-> e.g. surprising similarities in agricultural, commercial, and proto-industrial development among various parts of Eurasia as late as 1750 (-> rupture to explain the further growth of western Europe alone in the 19th century) -> not enough to look at differences within Europe

two-way comparisons raises new questions + reconfigures the relationships among the old ones

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13
Q

two clusters of the argument that Europe’s economy was uniquely capable of generating an industrial transformation

A

16th-18th century Europe had already moved far ahead of the rest of its world in the accumulation of both physical and human capital (central writer = E.L. Jones)

  • central tenet:customary checks on fertility (later marriage, celibate clergy etc.) -> more surplus -> Europe could support more non-farmers
  • problem = is not unique in Europe (there were also eco booms and busts, that shouldn’t be treated as temporary flowerings)
  1. European institutions allocated resources in more conducive to long-term self-sustaining growth (Braudel, Wallerstein, Chaudhuri, North)
  • common = claim eco. dev. was stifled outside of Europe by a state that was either to strong and hostile to private property, or too weak to protect entrepreneurs
  • Brenner: divergent dev. paths in Europe (east and west) as result of class struggles that altered property-rights regimes
  • other scholars: more focus on institutions that allowed for accumulation through coercion and collusion
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14
Q

‘the whole world was poor and accumulation minimal until the early modern European breakthrough’
-> emphasis on ‘‘fall of Asia’’ + ‘‘rise of Europe”

  • anachronistic in 2 ways
A
  1. lends to read too much of 19th+20th century ecological disasters that affected much of Asia back into earlier periods + present 18th century Asian societies as having exhausted all possibilities available to them (overpopulation)
    - ! India, Southeast Asia, parts of China still could accommodate more people
  2. internalize extraordinary ecological bounty that Europeans gained from the New World (ignores scale of New World windfall) -> no concern for similarities ecological pressures Europe and core regions Asia

literature tends to oversimplify, to contrast between ecologically played-out Asia, and a Europe with plenty of room to grow (given the New World)

Reality = overall pattern of ecological advantage is quite mixed (some areas in Europe advantage, some in Asia)

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15
Q

Sugihara argues + Kenneth agrees;

A
  • population growth East Asia 1500-1800 shouldn’t be seen as a block for development, but as a miracle (supporting people, creating skills etc.) that can be compared with economic achievement Europe industrialization
  • highlights high standard of living 18th century Japan and China + sophistication of institutions (created many benefits of market without same guarantees for property and contract Westerners believe is precondition of markets
  • not just diffusion of Western achievements led to high world GDP: combination of Western European and east Asian types of growth

! Kenneth and Sugihara disagree about labor and population influence

  • Sugihara: basic difference miracles = Europe was capital-intensive + Asia was labor-intensive as far back as 1500
  • Kenneth: Europe could have also ended up on labor-intensive path, it didn’t due to fossil fuels and access to New World resrouces
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16
Q

problems with Europe-Centered Stories

A
  1. industrial capitalism that allowed escape from common constraints of the preindustrial world emerged only in the 1800s, dev. before that in western Europe’s economy was not more conducive to industrial formation than very similar processes of commercialization and ‘‘proto-industrial’’ growth occing in various core areas in Asia
  2. European industrialization was still quite limited -> risky to post a ‘‘European miracle’’ on basic features common to western Europe
17
Q

main findings Kenneth

Chapter 1 - European advantage in resources?

A
  • Europe had no crucial advantage in physical capital before 1800+ wasn’t freer of Malthusian pressures (and thus more able to invest) than many other large economies.
  • there were some technological edge Europe had before the industrial revolution, but this was not sufficient for the industrial revolution, geographical accidents were crucial
18
Q

Kenneth main findings

Chapter 2 - markets and related institutions

A
  • western European land, labor and markets (as late as 1789) were further from perfect competition than those in most of China
  • Chinese and European relationships between households and markets and institutions was mostly the same

!core regions in China and Japan
circa 1750 seem to resemble the most advanced parts of western Europe, combining sophisticated agriculture, commerce, and nonmechanized industry in
similar, arguably even more fully realized, ways. Thus we must look outside
these cores to explain their subsequent divergence.

19
Q

Kenneth main findings

chapter 3 - differences in demand and their effects on production

A
  • differences differentiated China, Japan, and Western Europe from other places but not from each other
  • increased production routinely led to increased consumption
  • differences in quantities of goods available and ‘‘consumerist’’ attitudes seem small and of uncertain direction

!differences in consumer behavior that favored Europe = heavily influenced by extra-European elements (extraction from New World)

20
Q

Kenneth main findings

chapter 4 - merchant actors at the large scale

A
  • REJECT: general structure of society or specific rules around commercial property gave European merchants a crucial advantage in amassing, preserving, deploying capital
  • some financial assets may have been better defined and more secure in Europe, but differences are too small to bear explanatory weight
  • Western European interest rates were probably lower than Indian, Japanese, or Chinese ones, but hard to show this made an important difference to rates of agricultural, commercial or proto-industrial expansion
  • only in overseas colonization and armed trading did Europe’s financial institutions (nurtured by system of competing debt-financed states) give it a crucial edge

!capital was not a scarce factor of production in the 18th century, even if Europe had an edge in assembling investment capital, it would not itself have solved ecological bottlenecks faced by all proto-industrial regions (lack of (fertile) land))

!!neither new forms of property (e.g. corporations) created in Europe nor the domestic policies of Europe’s competing states made pre-1800 Europe itself a significantly better environment for productive activity, the PROJECTION OF INTERSTATE RIVALRIES OVERSEAS DID MATTER

21
Q

Kenneth main findings

chapter 5 - ecological obstacles to further growth in all of the most densely populated, market-driven, and commercially sophisticated areas of Eurasia

A
  • shortages of fuel and building materials, to some extent of fire
  • threats continued fertility of some areas’ soils
  • long distance trade with less densely populated Old World areas couldn’t provide a fully adequate solution : high transport costs + low demand ‘‘peripheral regions’’ +difficulties of exchange without some form of colonization
22
Q

Kenneth main findings

chapter 6 - easing of Europe’s land constraint during industrialization

A
  • shift from wood to coal
  • technological advances
  • Western Europe could increase its population, specialization in manufacturing, and per capita consumption levels due to: previously unexploited agricultural resources + institutional blockages eastern Europe left lots of slack + new land management techniques brought home from empire early 19th century

relief provided by Europe’s relations with the New World:

  • natural bounty New World
  • slave trade + other aspects of European colonial systems -> new kind of periphery that enabled Europe to exchange in an evergrowing volume

*Europe’s ‘‘system’’ differed from free labor peripheries such as the Chinese interior: more or less free labor system -> people shift away from diminish returns activities -> population growth and proto-industrialization of their own -> decreased their need to import and export -> = at cost of economic progress/advance of the country/region as a whole

23
Q

proto-industrialization

A

the massive expansion of nonmechanized industries,

mostly composed of rural laborers producing for (often distant) markets through the mediation of merchants

= generally associated with significant population growth + cycle of low piece rates (increases output)

historians are divided about the relationship between proto-industrialization and industrialization proper:

  • it led to accumulatin of profits + dev. market-oriented activity, specialization + taste for things hard to make at home
  • Mokyr: dev. ‘‘pseudo-surplus labor’’ = contribution to industrialization
24
Q

significance of Atlantic trade lies not in terms of …
it lies in terms of..

A

NOT:

  • financial profits
  • capital accumulation
  • demand for manufacturers

because, this could have probably been generated enough at home

IT IS:

  • relieved the strain on Europe’s supply of land and energy, which were scarce

it was the benefit of moving out of a world of Malthusian constraints

25
Q

in sum

A
  • combination of relatively high levels of accumulation, demographic patterns, and the existence of certain kinds of markets separates out a few places (Europe, China, Japan) as most likely settings for shift in economic possibilities BUT doesn’t explain why it occurred first in western Europe
  • eco. activity less directly tied to physical needs, some possibly important western European differences in culture and institutions appear, BUT they are limited in strength and scope (don’t justify claim that just western Europe had e.g. a consumer society)
  • whatever advantages Europe had weren’t sufficient as a way out of ecological constraints shared with various ‘‘core’’ areas of the world
26
Q

uniformitarianism

A
  • James Blaut

the idea that at a certain point (Blaut: 1492), many interconnected parts of Afro-Eurasia had roughly similar potential for ‘‘dynamism’’ in general, and thus for ‘‘modernity’’

26
Q

effects of global conjunctures on the creation of the first ‘‘modern’’ core and periphery

A
  1. epidemics weakened resistance to European appropriation of land
  2. transatlantic relations made the flow of needed resources to Europe self-catelyzing in ways the consensual trade between Old World regions wasn’t (self-perpetuating division of labor between primary product exporters and manufacturing regions in the modern world)

-> creation modern core - periphery was created in tandem