Global economic History A very short introduction chapter 1-2 PDF

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Chapt e r1 :TheGr e a tDi v e r g e nc e Ec o no mi chi s t or yha sbe c omee x c i t i n gi nr e c e nty e a r s :—>Ca us eoft heq ue s t i on:“ Wh ya r es o me c o unt r i e sr i c ha nds o mec ount r i e spoor ” ● Fo re x a mp l e ,wh ydi dt hei ndus t r i a lr e v ol ut i onha ppe nEn gl a ndr a t he rt ha nFr a nc e ? ● Wh ye c onomi cgr o wt ht ookoffi nEu r oper a t he rt h a nAs i aorAf r i c a ? Wec a ndi vi det h el a s t500y e a r si nt ot hr e ep e r i ods : 1. 1500t oa bout1800 ,Wa st h eMe r c ant i l i s te r a. a . Eu r o pe a nma nuf a c t u r i n gwa spr omo t e da tt h ee xpe ns eo ft h ec ol on i e s b . We s t e r nEu r o pea ndt heUS Ama dee c ono mi cde v e l op me n tapr i or i t y . c . Cr e a t i onofUn i fie dNa t i ona lMa r k e t sb ye l i mi na t i o nI nt e r nalt a r i ffsandbui l di ng t r ans por t at i on d . Es t a b l i s h me nto fMa s sEduc a t i ont oupgr adet hel aborf o r c e . ● J a pa nwa st h egr e a t e s ts u c c e s soft h e20t hc e nt u r y . ● I ndus t r i a l i z a t i ona ndd e i nd us t r i a l i z a t i onha v eb e e nma j orc a us e soft hed i v e r g e n c ei nwor l d i nc o me s . ○ I n1750t hewor l d’ sma nuf a c t u r i n gt o okp l a c ei nChi n a( 33% o ft hewor l dt o t a l ) . ● 170018 80,t heBr i t i s hI ndus t r i a lRe v ol ut i onwa st hema j ore v e n t . ○ Thes h a r eofma n uf a c t u r i n gi nc r e a s e df r om 2% t o23%. Re alwa ge s ● GDPi sno ta na de qua t eme a s u r eofwe l l b e i n g .I tl e a v e soutma n yf a c t o r ss uc ha she al t h, l i f e e xpe c t a nc y ,a nde duc at i onl e v e l . ● Re a lwa g e st e l lu smu c ha bou tt hes t a n da r do fl i vi n go ft hea v e r a g epe r s ona ndhe l pe xpl a i nt he or i g i nsa n ds pr e a dofmode r ni ndu s t r y . ● Thef u nda me n t a ls t a nda r do fl i vi n gqu e s t i oni swhe t he raf ul l ye mp l o y e dl a bor e re a r ne de nought o s uppo r taf a mi l ya tb a r e b one ss ub s i s t e nc e . ● I nt hepoorc ount r i e so ft hewor l d,ho we v e r ,r e a lwa g e sa r es t i l la tba r e bone ss u bs i s t e nc e .

● , Fo re x a mpl e , Be i j i n g ’ sr e a lwa g e sa r es t i l la tba r e bone s . ● Pe o pl e ’ she i ghta r es t u nne df o rl a c koff o od,l o we rl i f ee xpe c t a nc y ,a n dade c l i nei nhe a l t h. ● Thei ndus t r i a lr e v o l ut i onwa st h er e s u l tofh i ghwa g e s -a ndno tj u s tt he i rc a us e . Chapt e r2:TheRi s eoft heWe s t Wh yh a st hewor l dbe c o mei nc r e a s i n gl yune q ua l ? ● Ge o gr a p h y→ Ma l a r i ahol dsba c kt het r op i c s → Br i t a i ns ’ sc oa lde pos i tunde r pi nne dt hei ndus t r i a l r e v ol ut i o n .

● I ns t i t u t i o ns ○ Ma n ye c o nomi s t sa r guet ha te c o nomi cs uc c e s si st her e s u l tofs e c ur epr o pe r t yr i ght s ,l o w t a x e s ,a ndmi n i ma lg o v e r nme nt . ○ Suc c e s s f ule c o nomi cde v e l opme n twa sduet ot her e pl a c e me n tofa bs o l ut i s m wi t h r e pr e s e n t a t i v eg o v e r n me nt . ○ Hi s t or i a nsh a v eb e e ni n v e s t i g a t i n gho wa bs o l ut i s ta ndor i e nt a lde s p ot i s ma c t ua l l ywo r k e d . ● Cul t ur e ○ Apopul a re x pl a n a t i onf o re c onomi cs uc c e s s . ■ Pr ot e s t a n t i s mma denor t he r nEur ope a nsmor er a t i ona la n dha r dwor ki n gt ha n a n y onee l s e . ● Ac c i de nt sofh i s t or y TheFi r s tGl obal i z a t i o n: ● ba c kgr ou nd,t e c hnol o g i c a lc ha n g e ,g l oba l i z a t i on,a nde c o no mi cp ol i c yt ur noutt oha v ebe e nt h e i mme di a t ec a us e sofune qu a lde v e l opme nt . ● Thei ndus t r i a lr e v o l ut i on ○ Thefir s tpha s eofg l oba l i z a t i on ● Gl oba l i z a t i onr e qui r e ds hi p st h a tc o u l ds a i lt h ehi ghs e a s . ● I twa sn otun t i lt he17t hc e nt u r yt ha tt h enor t h e r nEur o pe a nsbe c a memor ei mp or t a nti mp e r i a l i s t . ● Du t c hc ol oni e s ○ The i re c onomi e sgr e wr a p i dl yb ye xpo r t i n gt o bac c o,r i c e ,whe a t ,andme a tt oEngl and andt heCar i bbe an. ● En g l i s ha ndDut c ht r a dewi t ht he i rc ol o ni e sdr o v et he i re c onomi e sf o r wa r d.Ci t i e sa nde xpor t or i e nt e dma nuf a c t u r i n g ● Thepopul a t i onoft h ema i nEur o pe a nc o unt r i e si n t o3gr ou ps . ○ Agr i c ul t u r a l ○ Ur ba n ○ Ru r a lnon-a gr i c ul t u r a l ■ Mos toft h ewe r ee n g a g e dwi t hf a r mi n g ● Thegr e a tc o nt i ne nt a lc ount r i e ss a was ma l lr e duc t i o ni nt hes h a r eoft he i rpo pu l a t i onsi n a gr i c ul t ur ea n dac or r e s pon di n gi nc r e a s ei nr u r a li ndus t r y .

Suc c e s si nt hegl ob ale c onomyha dma j ori mp l i c a t i on sf o re c on omi cde v e l opme nt : 1. Thegr o wt hi nur ba ni z a t i ona ndr ur a lma nuf a c t ur i ngi nc r e a s e dt hede ma ndf orl a bo r 2. Gr o wi n gc i t i e sa ndah i ghwa g ee c onomyp utg r e a tde ma ndsona gr i c ul t u r ef orf o oda nd l a b o r 3. Gr o wi n gur ba nde ma nda l s ol e dt oe n e r gyr e v o l ut i onsi nbot hEn gl a nda ndt he Ne t he r l a nds . 4. Thehi ghwa g ee c ono myg e n e r a t e dahi g hl e v e lofl i t e r a c y,Nume r a c y ,a n ds ki l l sf o r ma t i on i ng e ne r a l .

Chapt e r3( I ndus t r i alRe v ol ut i on)p. 275 5 TheI ndus t r i alRe v ol ut i o n1 760t o1 85 0) : ● Wh ys o mer i c hs o mepo or . ● Al loft her i c hc ou nt r i e swe r ei n v o l v e di nde v e l opi n gt e c h nol o gy ,a ut omobi l e s ,c he mi c a l s , p e t r o l e um, e l e c t r i c i t y ,whi l epoo r e rc ount r i e sdi dno ti nno v a t e . ● Ri c hc ount r i e sr e l a t e dt od e v e l opme nt si nt hena t ur a ls c i e nc e s . ● St r on gu ni v e r s i t ypr ogr a mme si nt he s ea r e a s . ● Ther e a s ont ha tp oorc oun t r i e sa r ep oori sbe c a us et he yus et e c hno l o gyt ha twa sde v e l ope db yr i c h c o unt r i e si nt h ep a s t . ● Thepr oc e s soft e c hni c a lc h a n g e ,i nwhi c hi n v e n t or si nt hel e a d i n ge c onomi e ss oughtt os a v ehi gh wa g e l a bou r , r e s ul t e di nma c hi ne r yt h a tf ur t he ri nc r e a s e dt hec o mp e t i t i v ea d v a n t a g eofr i c hc ount r i e swi t h outc onf e r r i n ga n y a d v a nt a g eont hepoorc ount r i e soft hewor l d. ● ● ●

I Ri nflue nc e ds us t ai ne de c o nomi cgr o wt h Br i t i s hI n dus t r i a lRe v ol ut i on-wa sl e a de ri nt e c h nol o gywo r l d wi de . Te c hno l ogywa st hemo t oroft heI ndus t r i a lRe v o l ut i on . Whywast her e v ol ut i o nar yt e c hnol og yi nv e nt e di nEngl andr a t he rt ha nt heNe t h e r l a ndso rFr a n c eor ,f o rt ha t ma t t e r ,Chi naorI n di a ? Expl a i ni n gt h eI ndus t r i a lRe v ol ut i on a . Br i t i s hwa g e swe r ehi ghr e l a t i v et ot hepr i c eofc a pi t a l18 30.

B. Br i t a i nha dt hec he a pe s te n e r gyi nt hewo r l d. ➔ Cul t ur a la ndpol i t i c a lc on t e xt(Wh yEn g l a nd) a . Th eI n dus t r i a lRe v o l ut i oni nflue nc e dpol i t i c a la n dc u l t u r a lc o nt e xtt ha tde v e l op e di nno v a t i on. b . Cons t i t u t i oni n flue nc e de c o nomi cgr o wt h -g o v e r n me ntt a x a t i on ,p r ope r t yr i gh t s . c .Sus t ai ne dbyt hee me r gi ngs c i e nt i ficc ul t ur e . d . Ur ba ni z a t i o na ndt hegr o wt ho fc o mme r c e . Th eCo t t oni ndu s t r y a . Ma i ni nd us t r yt oh e l pI ndus t r i a lRe v ol ut i o na ndd e v e l ope xpo r t ,1s tme c ha ni z e di ndus t r y ,r e duc e dl a bourhou r s . b .I n v e s t or ss pe ndmo ne yi nR&D. Thes t e a me n g i ne a . Br i t a i n-La r g ec oa li ndu s t r y ,R&Da ndde v e l op me ntofs t e a me n g i ne . Con t i nu i n gi n v e n t i on a . 182 0swa g e swe r ea l r e a d yh i ghe ri nt heUSA→ t hepo we rl oom wa st a ke nu pmor er a p i dl yi nt heUSAt ha ni twa si n Br i t a i n.

b . 1s tI r onr a i l sf o rt r a v e l i n gonl yi nBr i t a i n. c . Br i t a i nt hec e n t r eo fwor l ds h i p bui l di n gi n flue nc e db yi r ona nde n gi ne e r i n g . d . Ha l foft h eg r o wt ho fl a bourpr o duc t i vi t yi nBr i t a i ni nt hemi d1 9t hc e n t u r ywa sduet os t e a m. Chapt e r4( TheAs c e nto ft heRi c h) a . be t we e n18151870USwa st h emos tt e c h nol o gi c a lc o unt r y . b .Br i t a i nd i dno tha v eapo l i c yt o‘ i ndus t r i a l i z e ’ .The s epol i c i e swe r eor i gi na l l ywo r ke douti nt heUSAa ndt he n pr omo t e di nEur opeb yFr i e dr i c hLi s t ,aGe r ma nwhol i v e di nt heUSAf r o m 1825t o1 832a ndt he nr e t u r ne dt o Ge r ma n yt owr i t e‘ Th eNa t i on a lSy s t e mo fPol i t i c a lEc onomy ’ . c .Ge r ma nba nk spr o vi de dc l i e n t swi t hl on g t e r mf undsa sc u r r e nta c c o unto v e r d r a f t sa tl o wr a t e sofi nt e r e s t . d .I n1880,Br i t a i np r oduc e d23% o ft hewor l d’ sma nuf a c t ur e s ,whi l eFr a nc e ,Ge r ma n y ,a n dBe l gi umt o g e t he rp r o d uc e d onl y1 8 %. By1913,Fr a nc e , Ge r ma n y , Be l gi um s ha r er o s et o23 %a n dBr i t a i n ’ ss h a r ed r oppe dt o14 %, Nor t hAme r i c a ns ha r e gr e wf r om 15% t o3 3% ofwor l dma nuf a c t ur i n g d . Fou ri n v e nt or sofma s s p r o duc e ds t e e lwe r ea nEn gl i s h ma n,a nAme r i c a n,aGe r ma nl i vi n gi nEn gl a nd,a nda Fr e n c hma n.The r ewa sn oi nt e r n a t i ona ll a gt he r e . Na pol e on ’ sI n s t i t u t i ona lRe v ol ut i on 1. c r e a t eal a r g en a t i on a lma r k e tb ya bol i s hi n gi nt e r na lGl oba lEc o no mi cHi s t or y42t a r i ffsa n di mp r o vi n gt r a n s p or t a t i on 2. e r e c ta ne xt e r n a lt a r i fft op r o t e c t‘ i n f a nti ndus t r i e s ’f r om Br i t i s hc omp e t i t i on 3. c r e a t eba nkst os t a bi l i z et h ec u r r e nc ya ndpr o vi deb us i ne s swi t hc a p i t a l 4. e s t a bl i s hma s se duc a t i o nt os pe e dt hea dop t i o na ndi n v e nt i onoft e c h no l o gy . ➔ Thema c r o e c onomi cc ha r a c t e roft e c h nol o gi c a lpr o gr e s s a . hi ghwa g e si ndu c e dmor ec a pi t a l i nt e ns i v ep r o d uc t i on.

b . GDPac ount r yc a npr od uc ewi t hi t sl a boura ndc a p i t a l : Chapt e r5( TheGr e a tEmpi r e s ) 1 . I ndus t r i a lRe v ol u t i oni nEur o pe-a c c e s s i bl ec oa lr e s e r v e sa ndg a i nsf r omgl oba l i z a t i on. 2.Ea s to fEur opewe r ee mp i r e s .

TheI nt e r na t i o nal i z a t i o no fTr adea nd Fi na nc e -Tot a lt r a d ewe ntf r om57 Bi n1947t o14 . 9T i n2 012,he l pi n gma n ye me r g i n gc oun t r i e st o di mi ni s he xt r e mepo v e r t y( l i v i n gund e r$1. 2 5 da i l y )f r o m 2005t o2008 . -OneUN’ sSus t a i n a bl eDe v e l opme ntGo a l s me t3y e a r spr i ort oi t sde a dl i ne , i n201 5 -Reducedpover t ya tt hec os tofi nc r e a s i n g i ne q ua l i t ya ndc r e a t i n gde b ta mon g s t e me r g e ntma r k e t s -Mos toft hi s“ fina nc i a l i z a t i o n”c a mef r om s t oc ki n v e s t me nt ,i ns t e a dofi n f r a s t r u c t ur e , c r e a t i n g:“ a r t i fic i a lbooma nd bus tc y c l e st h a te nd a n g e rt h es oc i a lwe l f a r eofe nt i r er e g i ons ” . -Rai s i n gque s t i on sa ndc o nc e r n so v e rt hene ol i b e r a ls y s t e m/ mode l . TheGl obalFi na nc i alCr i s i s -Consequencesofder e g ul a t i o nbe g a nt os ho wi nt hel a t e90s ,dur i n gt he97 98Sout hAs i a nc oun t r i e s c r i s i s ,a ffe c t i n gTha i l a nd, I ndon e s i a ,Ma l a y s i a ,Sout hKor e a , a ndt hePh i l i ppi ne s . -I t si mp a c te xt e nde dt ot h eUS,a ndt hegl obe , wi t ht he20 08c r i s i s , t ha twa sbui l tt hr ou ghoutt hr e e c o ns e c ut i v et e r msofNe ol i be r a l / De r e gul a t or yPr e s i de n t s :Re a g a n,Cl i n t o na ndBus h . -Asar e s u l t ,weha dgi g a n t i cba i l out sa ndf r e nz y me r g e r s( t ha ts a v e dt heAs i a nc r i s i s ,bu t c o ul dn' ta v oi dhe l pon e )c r e a t i n gap e r i od kno wna st h e“ Gr e a tRe c e s s i on”20 112013; wi t ht h ewor s tc o me b a c kf r o m ac r i s i si n hi s t o r y . ThePo we rofTr a ns na t i ona lCor por a t i ons -TNCsar epo we r f ulmu l t i na t i ona l swi t hmor e t ha n12s ubs i di a r i e si ndi ffe r e ntc ount r i e s .The t ot a lnumbe rgr e wf r om 7, 000i nt h e7 0st o o v e r80, 000i n2 012 .( Wa l ma r t ,Exx o nMobi l , GM,Si e me nsa ndMi t s ubi s hia r ee xa mpl e sof TNCs ) . -Thosecor por a t i onsr i v a lc o unt r i e si nt e r msofi nc ome / r e v e nu e ,c r e a t i n ga ne wf or m ofor g a ni z i n gs o c i e t y ,s i nc et he yha v eabi gi nflue n c ei npol i t i c s a ndi nt e r n a t i on a lt r a de ,du et ot hef a c tt ha tt he yc o n t r o lmos to fwo r l d’ s i n v e s t me ntc a pi t a l ,t e c hn ol ogy , a nda c c e s st oi nt e r na t i o na lma r k e t s .

TheEnhanc e dRo l eo fI nt e r na t i ona lEc onomi cI ns t i t ut i ons -Re i ns t a t e st her e l e v a nc eofCo r p or a t i oni nt h egl oba lor d e r , us i n gt heWa s hi n g t onCons e n s u s( Wor l d Ba nka ndI MFr ul e st oq u a l i f yf o rl oa ns )a sa na r g ume nt . TheMo de r nNa t i onSt a t eSy s t e m andi t sde mi s e -ThePeaceofWes t pha l i ade v e l ope dt hec o n c e ptofs o v e r e i gnna t i onsi n16 48, t h a twa sa da pt e da f t e r WW1. -Wi t hGl oba l i z a t i onTe nde n c i e sgr o wi n g s t r on g e ri nt he70s ,t he s ec onc e pt swe r e c ha l l e n g e d. Es p e c i a l l ya f t e rBus h ’ s a nnounc e me n tofa“ Ne wwo r l dOr de r ”i nt he 90s ,fig ur a t i v e l yki l l i n gt hi sc onc e p t . -Event houg hy ouc a n ’ td e c l a r et hi sc onc e p t out da t e da ndde a d ,i tbe c o me si mpos s i b l et o de n yt ha ti sf a c i n gma n yc ha l l e n g e swi t h g l oba l i z a t i o na n dt h eupc omi n gf ut u r e .I n c o nc l us i on,t hea ut ho rs t a t e st ha twea r ei na t r a ns i t i ona lpha s e ,be t we e nt hemode r nNa t i on St a t et ot hepo s t mode r nc onc e p to fGl oba l Go v e r na nc e . Pol i t i c a lGl obal i z a t i onandGl obalGo v e r nanc e -Descr i be sho wt h epol i t i c a ls c e na r i oi sb e c omi n gagl oba l we bwi t hi nt e r de pe nd e ntp l a y e r s , i ns t e a do fma n y s o v e r e i gnna t i onsr ul i n gf o rt he ms e l v e s . -Tal ksa bou tac o n v e r g e nc eofi nt e r e s t sa n dpol i t i c a lf o r c e s , wi t ht h ec r e a t i ono faho mo g e n ousl e a di n gp o we r / e nt i t y , whe r edi ffe r e n tc o unt r i e sg e tt o g e t he rt ode c i dea ndr ul e . Ci t e st hei nt e r na t i ona la g e n c i e st ha te xi s t :UN, NATO, WTO, a ndOECD. -Usest heEu r o pe a nUn i ona st hebe s tr e pr e s e n t a t i onoft hi s phe nome na ....