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The Great Divergence: China, Europe, and the Making of the Modern World Economy.

by Kenneth Pomeranz

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The Great Divergence brings new insight to one of the classic questions of history: Why did sustained industrial growth begin in Northwest Europe, despite surprising similarities between advanced areas of Europe and East Asia? As Ken Pomeranz shows, as recently as 1750, parallels between these two parts of the world were very high in life expectancy, consumption, product and factor markets, and the strategies of households. Perhaps most surprisingly, Pomeranz demonstrates that the Chinese and Japanese cores were no worse off ecologically than Western Europe. Core areas throughout the eighteenth-century Old World faced comparable local shortages of land-intensive products, shortages that were only partly resolved by trade.

Pomeranz argues that Europe's nineteenth-century divergence from the Old World owes much to the fortunate location of coal, which substituted for timber. This made Europe's failure to use its land intensively much less of a problem, while allowing growth in energy-intensive industries. Another crucial difference that he notes has to do with trade. Fortuitous global conjunctures made the Americas a greater source of needed primary products for Europe than any Asian periphery. This allowed Northwest Europe to grow dramatically in population, specialize further in manufactures, and remove labor from the land, using increased imports rather than maximizing yields. Together, coal and the New World allowed Europe to grow along resource-intensive, labor-saving paths.

Meanwhile, Asia hit a cul-de-sac. Although the East Asian hinterlands boomed after 1750, both in population and in manufacturing, this growth prevented these peripheral regions from exporting vital resources to the cloth-producing Yangzi Delta. As a result, growth in the core of East Asia's economy essentially stopped, and what growth did exist was forced along labor-intensive, resource-saving paths--paths Europe could have been forced down, too, had it not been for favorable resource stocks from underground and overseas.




All Customer Reviews
Average Customer Review:4 out of 5 stars
3 of 4 people found the following review helpful:

5 out of 5 starsPowerful data and arguments, 2007-04-25
Kenneth Pomeranz's The Great Divergence reinforces some arguments of Frank's ReOrient and reformulates some others. Like Frank, Pomeranz argues that European economy was not unusually different from or superior to the economies of China and Japan until the 19th century. Like Frank, Pomeranz also argues that the critical factors that made possible the rise of Europe were external rather than internal factors. However, unlike Frank who explained the rise of the West in the 19th century through "the fall of Asia" in the previous century, Pomeranz attributes the nineteenth-century divergence between the European economy and the Asian economies to Europe's coal and New World's land that jointly relived the ecological constraints of the nineteenth-century Europeans.

Explaining Pre-Divergence Similarities:

Pomeranz starts his book with comparisons of European and Asian economies in 16th through 18th centuries. A difference in Pomeranz's approach is that he prefers to compare "regions" rather than countries. He argues that such places as Yangzi Delta, The Kanto plain, Britain, the Netherlands, and Gujarat, shared some crucial features with each other, which they did not share with the rest of the world or subcontinent around them. Thus, he prefers to compare these special areas directly rather than within the larger "arbitrary" continental units (p. 8).

Pomeranz first demonstrates that there were no significant differences between England, China, and Japan in terms of average standards of life. Average life expectancy and calorie intake were at comparable levels in all three countries. In the same vein, the European had no superiority to Asians with respect to technology and mining. China was ahead of Europe in physical science, mathematics, and maternal and infant health. Europe's irrigation technology also lagged behind China, India, and Japan. Even as late as first half of the 19th century, Indian iron was reported to be superior to English iron (pp. 44-6). If Europe had any real technological edge in the 18th century, it was not in tools or machines, but in "instruments" such as clocks, watches, telescopes, and eyeglasses (p. 67).

Pomeranz then tries to show that differences in terms of labor and land markets in Europe and China in 16th through 18th centuries were significant and did not always favor Europe so that they would be a viable explanation for the later divergence. Indeed, overall China was closer to market economy than was most of Europe, including most of "western" Europe. Much of Western Europe's farmland was harder to buy and sell than that of China. In Yangzi Valley, for example, close to half of land was rented (p. 72-3). This was also similar in labor market. Labor was not less free in China than in Europe (pp. 80-1). Thus, Pomeranz concludes that Europe's factor markets for land and labor "seem no closer to Smithian ideas of freedom and efficiency than do those of China, and perhaps a good deal less so," (p. 107).

Part II of The Great Divergence deals with the less-analyzed issue of consumption. Pomeranz takes issue with Sombart and some others' argument that Europe a produced a unique "consumer society" that provided a demand base for industrial revolution. Pomeranz challenges the "consumer society" argument on two grounds. On the one side, he demonstrates that the rise in the European consumption of such luxury goods as tea, sugar, and tobacco was very incremental until the 19th century. He therefore asserts that imagining an irreversible "birth of a consumer society" before 1850 may be seriously misleading (p. 119). On the other side, he demonstrates that consumption of these everyday luxury goods were at comparable levels in China and Japan. The consumption of durable luxuries (furniture, pictures, china, books, jewelry, etc.) was not significantly different in these three regions either (pp. 130-1). Thus, Europe did not have any type of "consumer society" advantage vis-à-vis China and Japan that would give her a head start in the competition to rise. I should also note that European figures as to consumption of luxury goods refute the arguments on "European" miracle as well. Pomeranz demonstrates that, if anything, it was a British, and to lesser extent Dutch, revolution and not a European one until 1850 (pp. 119).

To sum up the first part, Pomeranz demonstrates that Europe was not exceptionally different from China or Japan in terms of production, market regulation, or the consumption of luxury goods. Given this similarity of internal factors, Pomeranz turns to external linkages to explain the nineteenth-century divergence.

Explaining the Divergence:

A weakness in Andre Gunder Frank's book was that he could not adequately account for the "rise of the West" in the late 18th and early 19th centuries. Frank's argument was that Asian economies were altogether facing a Kondratieff B-cycle in the first half of the 18th century and this allowed Europe to finally outdo the Asians. He therefore asserts that "the fall of Asia" preceded European political and military intervention in Asian nations (ReOrient, pp. 266-8). Pomeranz finds this argument impressionistic and discards it on the grounds that population growth and ecological effects that were argued to make China "fall" were present in Europe as well. Thus, he asserts, "if Europe was not yet in crisis, then in all likelihood China was not either," (p. 12).

Pomeranz argues that the primary problem that both European and Asian nations were facing by 18th century were the ecological constraints that resulted from increasing population and scarce land. Therefore, the real and long-lasting solution would necessitate land-saving innovations rather than labor-saving ones.
As such, industrial revolution was a cause of later European rise than result of previous European exceptionality.

A Conclusion:
When compared with Frank's ReOrient, Pomeranz's The Great Divergence is more robust and convincing in two respects. First, it does not have a "Sinocentrism" bias and argues that the pre-1800 world was "a polycentric world with no dominant center," (p. 4). Second, it tries to explain the rise of Europe in the 19th century with substantive factors rather than mysterious Kondratieff cycles. In that respect, The Great Divergence is a nice remedy to the gaps and problems in ReOrient. However, I think that Pomeranz's downplaying the importance of profits that European made through colonialism is misleading. In evaluating the role of colonial profit-extraction in Europe's rise, one should take into account its impact on the continuation and spread of industrial revolution as well as on industrial revolution itself. Even if the spark of the industrial revolution could be lighted without the profits made in the New World, the fire of industrial revolution would not have survived a couple decades if it were not for the colonial resources and markets.



4 of 4 people found the following review helpful:

4 out of 5 starspovocative and meticulously researched!, 2006-05-24
The strengths: Very provocative, aiming straight at conventional wisdom, be it euro-centric or world-system ones. Solid research behind the comparative study of Europe, China, and to a lesser extend, Japan. Pomeranz gives out hard evidence in life-expectacy, birth rates, market condition, ecological stress etc., hightlighting striking similarites between these socities in the 18th century.

Some readers may have problem with his conclusion that industrialization went ahead only because Europe got lucky in the convenient location of coal and the readily available resourses of the new world. However, just because these are paramount factors does not mean that they are all it needed. Put another way, had China got the same good fortune, it does not necessarily follow that China would industrilize, nor has Pomeranz argued this way.

Weaknesses: The writing is BAD, very convoluted. However, the most important failure is that Pomeranz treats these societies as though they were static. He failed to take into consideration their difference in the RATE of change. The fact that Europe was playing a catch up to Asia through-out the middle ages, and achieved par in pre-modern time, had to imply a quicker pulse. Europe's gradual opening of the mind (reformation ,renaissance), was roughly concurrent with China's gradual closing (the advent of neo-confucianism, ossification of the civil examination system). It's hard to believe that this change of fortune had no long-lasting impact on the underlying dynamics of the societes. Culture does matter, it's just been given a bad name by the likes of Huntington and Landes:)


4 of 4 people found the following review helpful:

4 out of 5 starsEurope Got Lucky, 2006-02-13
Pomeranz advances the thesis that Europe's rise to world power (instead of a potentially similar but not historically realized rise by China, Japan, or India) was not caused by any internal social advantage possessed by western Europe-at least not principally caused. Pomeranz uses extensive research to demonstrate that western Europe, China, and Japan were not fundamentally different societies at the beginning of the modern era. The author maintains that Europe had the good fortune of having the land and mineral resources of the New World available at the right time, along with the conveniently-located coal resources of England; and it is this collection of fortuitous advantages that enabled Europe to propel itself into industrial revolution and world power.

The premise of the book is promising. The meat of the book can be a bit difficult to chew. The author compares the human, energy, land, and other resources of Europe and China in great detail to make his case. The sheer volume of facts and figures can make the going slow. Still, it's worth reading all of what the author has to say.

Overall, the argument is compelling. All three societies (western Europe, China, and Japan) were faced with populations that had more-or-less come in line with the carrying capacities of their lands based on the level of technology of the day. Additional agricultural productivity could only have come with additional inputs of labor into the existing stock of land. This is essentially what happened in China. Western Europe, led by England, went the way of labor-saving techniques and technologies that would not have been practicable without access to the additional agricultural potential and mineral wealth of the New World. Other factors, such as financial institutions and internal competition fade in importance before the simple math of carrying capacity.

The Great Divergence is quality reading. One does not have to agree with everything contained in the book to absorb the basic point: Europe got lucky. Be prepared to wade through an appropriately generous supply of facts and figures to back Pomeranz's claim.



16 of 24 people found the following review helpful:

1 out of 5 starsnonsense, 2005-12-05
In "The Great Divergence", Kenneth Pomeranz presents an exhaustive investigation of the minutest differences and similarities in development of China and Western Europe. His claim, and stated objective, is to show that Europe's emergence as a preeminent power was the result of privileged access to overseas colonies, exploitation of non-Europeans, and a fortunate `geographic accident' of the location of coal in England. However, considering China's significant, and much earlier, developments in science, technology, and shipping, not to mention their huge deposits of coal, and its use some 600 years before the Europeans to make iron, it's difficult to understand Pomeranz's rationalization of those claims and ultimately the whole point of his book.

His specialty and interests clearly lie in China. In this book he attempts to shed a somewhat biased benevolent light on China by explaining the violent circumstances that led to the industrial revolution in Europe, and why it didn't happen in China. He presents a comparative analysis in such close, tortuous, detail that he becomes myopic in drawing his conclusions. His joy and skill clearly lie in analysis, rather than synthesis, and in the process, and among the ensuing debris, he loses a view of the whole as processes of nation building rather than competing sets of historical data. The outcome notwithstanding, he consistently paints each step in the process of growth in Europe and its colonies as a violent and ugly stepsister to a more sophisticated, benign version taking place in China. All of which may be true, but he discounts the effects of institutions, capital markets, capital accumulation, and regulatory competition in Europe as having marginal effect on the difference in outcome between the two areas because in his opinion what was happening in Europe was so similar to what was going on in China. He states that "European science, technology, and philosophical inclinations alone do not seem an adequate explanation, and alleged differences in economic institutions seem largely irrelevant".

Regulatory competition in Europe, for Pomeranz, equates to military competition. Although it could be argued from a more objective perspective that military research and development regularly spins off technological advances applicable in commercial areas, Pomeranz claims that in Europe `the net effect of warfare on technological innovation is likely to have been negative'. Clearly not true, but his argument about it possibly killing off other inventors was kind of funny. The development of institutions and property rights arising from this competition for him equals only the purchases of position, interference of guild control, and the granting monopoly privileges. He claims that all served to keep prices high, limit the extent of markets, and restrict output. The most positive function of `military' competition seen by Pomeranz is in the overseas projection of power. This lies in contrast to his claim that China was engaged in competitive trade with low margins, unprivileged by the state, that couldn't generate enough profits to finance a European style military capitalism. Here he ignores the Chinese obsession with intensive land use to feed its armies. The vast differences between the European states and the diversity of politics, social constructs, and institutions therein will show that had any single one of them been dominant the story of Europe, and the world, would have been very much different. Had the Chinese the benefit of this fracture, the voyages of Zheng He would have been continued, but when he died, the Confucians were regaining power and There was no political or spiritual will to continue. They felt that other nations had nothing to offer the already prosperous Chinese and they had no need to conquer their souls. Their voyages were ended, their fleets were dismantled and they turned inward. It became a crime to set sail from China in a multi-masted ship. This was their choice. One nation, one choice. Had there been competition among states in China, someone, somewhere would have chosen to continue.

As far as ethical systems and ideology are concerned, Pomeranz doesn't consider the consequences of differing motivation but only writes that philosophical inclinations do not seem an adequate explanation of divergent paths. Lost in analysis of the details of the similarities, here he misses the significance of the differences. Arguing that they were too small to create the large disparities in outcomes, he fails to ask whether those differences were what led to different choices. The differences in the ethical systems of Christian Western Europe and Confucian, Buddhist, and Taoist China are enormous. The differences in the choices made within the context of those systems, especially within the protestant reformation and the creation of the Church of England, are significant. Pomeranz claims that ideology, or `philosophical inclinations', can't explain the different outcomes in the fortunes of China and Europe, but it was ideology and philosophy that led to the divergence in their development paths. Western Europe's history of fighting Muslims to keep them at bay and out of Europe established their crusading zeal to protect themselves by trying to convert everyone they could find. They embodied this fear and hegemonic drive and made Christian solipsism an imperative part of their culture. Vasco Da Gama said that the objectives of his voyages were "Christians and Spices". This dogmatic drive of the Europeans and their churches' implicit consent of their conquests and colonialism lent a higher power to their expansion. The Chinese chose not to continue their voyages. The Europeans were on a mission from God.

In this book, great tenaciousness in presenting historical data meets an astounding lack of insight into behavior and economics, and leaves the reader (at least me anyway) wondering why it was written in the first place.



4 of 5 people found the following review helpful:

4 out of 5 starsSomewhat Innovative, Hard to Read, 2005-11-24
This book does a good job of criticizing many Anglo-centric explanations of why Europeans industrialized first by providing detailed evidence that the area near the Yangzi river delta was mostly as advanced as England when England started the industrial revolution.
It does a less convincing job of arguing that coal and new world land were the main reasons for England's success. I'm tempted to believe that American sugar provided desperately needed calories to break out of a Malthusian trap, but the evidence doesn't show that became significant until the industrial revolution had already started.
Conveniently located coal undoubtedly gave England a boost, but not a big enough boost that there is a practical way to decide it was more important than the numerous cultural differences which might have given England the edge it needed.
The book makes a serious effort to dismiss those cultural explanations, but is not thorough enough. In particular, I'm disappointed with the cryptic way that it dismisses the relevance of the ideas in Helmut Schoeck's book Envy.
The style is often deadening, with lengthy descriptions of details whose relevance is unobvious.




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