How the World Became Rich: The Historical Origins of Economic Growth

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Students of economics will find the book’s clear explanations particularly valuable in enhancing their understanding of economic growth and its underlying mechanisms. The authors analyze how institutions, including property rights, the rule of law, governance structures, and political systems, have influenced economic development. We are treated to a catalog of canonical results wrung from the stones of history, findings that we can use to guide our thinking about broader questions of development. They conclude that there is no killer recipe and that a society’s institutions and culture always play a role.

And if it’s military success that we’re talking about, why didn’t the Dutch invest more in fiscal capacity? In this vein, I would have liked to see more emphasis on the now-standard critiques of the Glorious Revolution literature, as summarized in Ogilvie and Carus ( 2014 ). In summary, the World’s journey to becoming rich has been driven by a combination of factors, including the Industrial Revolution, technological advancements, global trade, capitalism, access to natural resources, human capital development, political stability, good governance, and well-functioning financial systems. This chapter examines the broader trajectory of economic development after the Industrial Revolution.A society’s past and its institutions and culture play a key role in shaping how it may—or may not—develop. You could envision a scenario in which sufficient growth in Dutch textile industries, for example, eventually triggered mass shipments of coal from Newcastle, as was possible for London. Moreover, people worldwide have more access to technology, goods and services and food than ever before.

They stress the role of institutions, this time operating through railroad investment and mass education, especially in Prussia and the United States.

Instead, the authors demonstrate how wealth is created through factors including institutions, the rule of law and property rights. At Vox, we believe that clarity is power, and that power shouldn’t only be available to those who can afford to pay. Its comprehensive coverage, clear explanations, integration of multiple perspectives, and consideration of social and environmental implications make it a valuable resource. This comprehensive coverage ensures that readers gain a rounded understanding of the complex dynamics involved in growth economics.

This happened only after the overall rate of technological progress became high enough to more than offset the downward pressure imposed by population growth. Given the growing importance of sustainability and environmental concerns, a comprehensive analysis of the environmental consequences of wealth creation is essential.While poverty leads to starvation in the past, today’s World faces problems because of obesity and an ageing population living longer than ever (McMichael, 2001). Many countries shared one or two advantages with Britain, but in hindsight, she appeared to have all of them—reasonably good government, Atlantic commerce (but no resource curse), weak guilds, a flexible apprenticeship system, and high levels of artisanal skill. One qualm that I do have with the treatment of institutions is the under-emphasis on real debates over the validity of some claims. The book’s strengths lie in its comprehensive coverage, clear explanations, integration of multiple perspectives, use of real-world examples, consideration of historical context and long-term trends, accessibility, and acknowledgement of social and environmental implications.