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    13 views15 pages

    A - Robert Allen, Texto 1

    Uploaded by

    Maria Vitoria Moura

    Copyright:

    © All Rights Reserved
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    of 15
    Robert C. Allen GLOBAL ECONOMIC HISTORY A Very Short Introduction Chapter 1 The great divergence fasco da Gama sailed to India and Columbus discovered the Americas. ‘We can divide the last 500 years into three pericds, The first, hich lasted from 1500 to about 1800, was the mereanti began with the voyages of Columbus and da Gama, which led to an integrated global economy, and ended with th Revolution. The Americas were settled and exported silver, sugar 1d tobacco; Africans were shipped as slaves to the Americas to ice these gods; and Asia sent spices, textiles, and porcelain 1e expense ofthe colonies, but 3, was not the objective By the time Napoleon was defeated at Waterloo lead in industry andl was out-comy Europe and the USA made economic ty and tried to achieve it with a standard creation of a unified national market by ency andl finance ind ‘These policies were suocessfal in Western Europe and North, America, and the countries in these regions joined Britain to form ly and without great success ompetition de-industrialized most of Asia, and Afriea tne policies that had worked in Western in Germany, and the USA proved less effective ‘mote nel more capit ‘more expensive labour, Much ofthis new technology is not cost-effective in low-wage countries, but it is what they need in| 2 order to catch up to the West, Most countries have adopted modern ig and investment coordination to jump Before we can learn how some counties becane rh, we must establish mher they became rich. Between 1500 and 1800, rich countries forged a ‘of GDP (gross dom Europe was already the richest been under way for two generations, and Great Britain was ‘the second richest economy, with an income of $1,706 in 1820. ‘Western Europe and Britains offshoots (Canads, Australia, New Zealand, and the USA) had incomes of between 31100 and $1,200. The rest ofthe world lagied behind, wih per capita Incomes between $500 and $700. Affiea was the poorest continent at $115, soap saat ‘Between 1820 and the present, the income gapshave expanded ‘ith only afew exceptions. The countries that were richest in 1620 have grown the most. ‘Today's rich countries have average incomes of $25,000-$50,000, ,987. The phenomenon of hieb the regions plotted towards the right with higher incomes in 1820 had the greatest income growth factors, ‘and the regions on the eft with lower initial incomes had smaller ‘Iuble 1, GDP per person around the world, 1820-2008, 1820 1918 1940 1989 2008 (Great Britain 106 som xs 6a ara Weterlands ssa 4039 x90 1895 605 e Other Western nor 608 $997 16880 an90 Europe = Mediteranean 985 1928 2018 29 ss2i8 Europe ee [Norther Europe __898 3996 ast vee a USA,Canada, NZ, 1202 saa 638 sass sons Astalia Easter Europe can at = == ssh 6s as mn 1908 Argentine, Uruguay, 712 asa noe asa sa ‘ite E ee) 1940 1989 2008 ger tain 8 nga ass 3965 om Jaan xy ver ase ota ans Thivan&SKorea sass a0. 20036 hina 600 asa se. aa ora ‘eee ‘93 92 2698 OthereastAsia 562 ang a1 Middle Bt Noth 64 29% 1800 sso mo SubSaharmatrin 45 68a 166 a World 686 12s 1958 suo a Sera ee nein omy lithe lime ged Ii ODF cdo aur ‘Nis Gia tin nls Soy al Ee eh i | GuK DW. Europe MN America Corina East Asia Indian subcontinent Rest of Wors Growth lat, 1820 to 2008 ar ar er a eT) {GOP por hoad in 1620, 002 964 est S61 61 eet the Middle ast, and much of sub-Saharan Aftica were less 1820 and achioving jen even farther behind the West eet oot con con i con # on F out sieeccgecaaed SenREEREbE? 4 incomes (Figure 2). In 1750, most of the BSSRBEReRRSS Z 1290) pom yo aBewenieg anufacturing took place n China (35% of the wo and the Indian subeontinent (25%). Produetion per person was 6 tl ecommichtory Jower'in Asia than i the richer countrias of Western Europe, but the dlierentials were comparatively small. By ‘transformed. The Chinese and Indian shares of world ‘manufaeturing had dropped to 4% and 1% respetively The UK, the USA, and Europe accounted for three-quarters of the total per head in the UK was.98 times that in China and 58 times that in India. Not only ad British output grovm and metallurgical industries were wehanized producers in the Wost. nth sformed from the world’s manufacturing reveled counties specialized inthe In this period, Britain's share of world ‘manufacturing inereased from 2% to 23%, and it was British competition that destroyed traditional manufacturing in Asi. The period from 1880 to the Second Woeld War was marked by the alization of the USA and continental Europe including particular, Their shares reached 3% and 24%, Germany, respectively its share dropped to 19%. Real wages GDP is not an adequate measure of wellbeing I leaves out many factors such as health life expectaney, and eduestional attainment. In addition, absence of data often makes GDP hard to 1 be bought with one’s ear much about the standard of living of the che origins and spread of mode [focus on labourers, To measure their standatdof living, their ‘wages must be compared tothe pres of consuner goods, and those prices ‘vegetable oil provides a litle ft. This was pi 1500. Franciseo Polsaert, a Dutch merchant who vs oon 16 gh with ree. ten with butter inthe eveniag, in the day time they munch a litle parched pulse or athergrain"The workmen ‘The Fundamental standard of living question is whether afi ‘empleyed labourer earned enough to support a femilyat ar ° Table 2, Bare-bones subsistence basket of goods ‘quantity protein perman calories (grams) er year per day perday food rin Teri 1657 2 eas 2oks 7 * she Es 3 akg 60 ° 1938 9 non-food sap Ainea/eotion lamp oil fel bones subsistence, Figure 2 shows the ratio of fall-time earnings ils cst of subsistence, Today, living standards are ad, butby the 1th Middle Ages, Florentine workers ate w [== London + Amstercam Doh! + Valencia = Florence + Being Income relative to cost of subsistence ol 1825 1425 1525 16251725. 1625, 8, Subsistence ratio for labourers ‘entury they could afford only polenta made fram maize, newly Introduced from the Americas, southem England also had the income to purchase: the 18th century such as the odd book, «mirror, Real wages have diverged as dramatically as GD? per head. Figure “shoves the real wage of ll bap esau 50 : fi 10 sew sac} 300 140071600 1600" 71700 10001500" 2000 44, Subsistence ratio, Landon and Bejing Income relative tacos of subsistence 2 the average incomes were only $500-$700. Me subsistence, and the surplus was extracted aristocracy, and the rch merchants. Northwestern Europe and the ‘USA had incomes four to sx times subsistence. Only in these societies did workers live above bare-bones subsistence, as Figure shows. These ies were suficently productive to also support aristocracies and merehan ‘Bare-bones subsistence has further wellbeing and economie progress. bare-bones diet are ‘enlisted inthe Habsban «let shifted from bread to penta In contrast, English soldiers in the 1th century averaged 172 em due a London gardener who spent 6 pence per week sending two of his children to school. The family bought wheat bread, meat, ber, 75 per year) were about four igh wages contributed to economic growth by good health and supporting widespread education. and most paradoxically, bare-bones subeistence removes the economie motivation fora country to develon economically ‘Theneed for more outpy mons ean Chapter 2 The rise of the West ‘Why has the world become ineeasingly unequal? Bat ‘Geography is important. Malaria holds back the tropics, and Britains coal depos ‘Geography is rarely the whole explanation, however, for its significance depends on technology and economic indeed, one ofthe aims of technology is to reduce of ad geography: Inthe 18th century, for instance, and Weber’ theory is no longer tenable. Another cultural argument claims that peasant farmers in the Third World are poor because they cling to traditional methods and fall to ‘economic incentives. The contrary, however, is true: farmers in dw seeds when they are cost-ffetive, and response to price changes feaansare pores slo oe ie and because a ck appropriate technology ~ not because they universal strategy for economic development. ‘The importance of political and legal on, and rent-seeking. ~all of which reduce the incentive to produce. These views are legality and levied forced I without Parliament failed, King was convieted of treason and executed. After the Restoration, disputes between Crown and Parliament eontinued, however, finally culminating in the Glorious Revolution of 1688 ‘when James I fled the eountry and Parliament gave the Crown ‘to William and Mary. With Parliament supreme, absolutism was ced, and the economy boomed. So goes the economists? expropriation or intervention by the emperor. tal conocer The first globalization utions, culture, and geography always Turk i the background, technological change, globalization, and economic Invented fl-rigged ships had three masts ~ the front and middle were square-rigged and the aft as latcen-rigged. Starder hulls and the use of rudders instead ofstering oars made ships that could navigate the globe, In 1495, Vasco da Gama reached Cochin in India, and ship with pepper. The price in Cochin was about 4% of Europe (Figure 5). The other 96% of the ‘transport costs BY 1760, the gap between the Irdian and English une 5 had dropped by 85 increased by only a sal from the Asian trade were reapel by European 8 8 8 GGrems of ever per kilogram 8 iso ve00 1550 1000 165017001780 — Engard — ra] 45, Price of pepper adjusted to price level of1600 early winners, Portuguese defeated where nutmeg, loves, and mace also accidentally discovered lowed by the discovery of large silver deposits in olivia and Mexico. The silver flooding into Spain paid for the fighting the Protestants across Europe, provided uropeans with the cash to buy up Asian goods and unleashed known as the Price Revolution. forces, and established foried trading posts abroad. All ofthe northern powers had them, Tre English Bast India Company was chartered rears lter indonesian possessions in the 1650s and 1640s. They colonized sugar islands in the Caribbean, and founded New York in 1624 and the Cape Colony in South Aftica in 1652. “The English also created an empirein the 17th century. In Asia, ‘the English East India Company defeated the Portuguese in the naval battle of Sally off Surat in 1612. Subsequently trading posts were established at Sorat (1612), Madras (1699), als and groups es Vinginia, was the frst success yd in 1620, and the much more important 1690s, Jamaica was added in 1655. ‘The English state aetively expanded its empire ~ particularly at the expense of the Dutch. The first steps were taken by Oliver ‘Crommell, daring the Commonwealth (1640-60), snd continued after the Restoration. Expenditure-on the nayy was greatly increased, The first Navigation Act was passed in 1651. This stlist measure was intended to exelude the Dutch from lish empire. The first Anglo-Dutch War fought for commercial advantage, but was far from 360, the [Navigation Acts were reinstated and extended, the (now Royal) [Naxy was expanded, and more wats were fought against the Dutch in 1665-7 and 1672-4. New York was seized in 1664. English rw established along the American coast from Georgia ‘to Maine. Their economies grew rapidly by exporting tobacco, tice, wheat, and meat to England and the Caribbean. By 1770, ish America had reached 2.8 million, or almost English and Dutch trade with thet colonies drove their economies forward, Cities and export-oriented manufacturing grew. The 20 Table 3. Percentage distribution of the population by sector, 1500-1750 agri culture nonagei cealture 1750) rural urban 22K sox 23% 7 agri culture nonagei- culture 1500 rural urban, seatest transformation 18% ‘Significant modernization ‘Netherlands England Belgium sigh evolution Germany 26 France (continued) 1750. ural 1500 rural nonagei- culture agri- culture ‘urban nonagri- —agri- celture ceulture ‘urban a a ia/ Hungary Asti 60 Poland 26 litle change aly Spain w 9 and the servants of eountry hoases, In 1500, Italy and Spain were the most advanced economies, withthe largest «ities that produced the best manufactures. The Low Countries By the eve of the Indastrial Rew reaching changes. England was the: ie ofthe population was 329% in 1750. Most were engaged in manufacturing their produets were shipped across Europe and, sometimes, around the world. Artisans in Witney, Oxfordshire, fr instance, sold blankets to the Hudson Bay Company, which swapped them for for with the natives of Canada. The eesmomy ofthe Low ‘Countries developed along similar lines, The Netherlands were even more urbanized than England and also hac oriented rural industries suman pai, atl Econmic tay and firew purred northwestern Europe forwat southern Europe back, ‘or were the prineipal fuels burned in cities. Asthe cities 1d prices skyrocketed, and subst Po Grams of sve pee mtn BTUs suaonyo2siqs Chapter 3 The Industrial Revolution ly 1760 to 1850) was turning, for it inaugurated the era of sustained wth. The Revolution was not theabrupe

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