Global economic history lecture 1 (Why economic global history?)

What is the human development index (HDI)?

Summary measure of key dimensions of human development: a long healthy life, a good education and decent standard of living

What would be a feedback loop regarding a country’s HDI?

The higher educated the population, the more it can contribute to higher productivity, which is key to economic growth

What is the great divergence?

a concept that defines the discrepancy in growth between the west and the rest roughly after 1820 and that explains patterns of divergent growth worldwide

What was the Industrial Revolution?

The Industrial Revolution was a period of significant industrial growth that began in the late 18th century, marked by the transition from agrarian economies to industrialized and urban economies through mechanization.

Where did the Industrial Revolution start? And when

Great Britain around 1750

What’s one of the first industries of the Industrial Revolution? And what did they start using?

Textile industry started using steam power for an example to produce cotton yarn

Which other field other than textile started using steam during the industrial revolution and what did it do?

Transportation (trains and steam ships) increased efficiency of economic transaction and production

Why was the Industrial Revolution one of the great divergence key features?

It increased productivity so countries started to grow

What shifted with before 1820 to after 1820?

Before 1820 differences between countries weren’t so pronounced. After 1820 the differences became much larger (GDP)

What happened in 1950? (has to do with the great divergence)

East Asia broke the pattern of the great divergence by industrialising. China is now th production Center of the world but also others like Taiwan have significant industries

Define economic globalization

Refers to the increasing interdependence of economies in the world because the growing scale of cross-border trade of commodities and services, flow of international capital and a high mobility of people. Economic globalization is facilitated by new technologies (transportation, communication technologies).

Explain regional integration during the Roman Empire

Trade networks excisted within the empire, that stretched from the Middle East to Scotland but there was no international trade. Rome had hostile neighbours. There were very few connections from Asia and the rest of the world. America was isolated.

Explain long distance trade during 1000-1300

For an example the silk routes, that connected Asia to the Middle East. Trade was so marginal it barely had influence on day to day life, let alone economic growth. Overland trade routes brought luxury goods from as far as china and India all the way back to the Middle East towards Europe. In exchange Europeans had little to offer except silver. Cities on the silk route flourished.

What happened in 1492?

Columbus entered the americas. New era of European explorations and connections between countries weren’t formed during colonialism.

What was colonialism?

Colonialism is the practice of acquiring and maintaining control over foreign territories, often involving the settlement of people from the colonizing country and exploitation of resources. It typically involves the imposition of the colonizers' culture, economy, and governance onto the colonized territories, leading to profound social, economic, and political changes. Colonialism has historically resulted in significant power imbalances, often resulting in the suppression of native populations and their cultures.

What was early modern globalization?

Early modern globalization refers to the period from the late 15th century to the 18th century, characterized by increased interconnectivity between different parts of the world through trade, exploration, and cultural exchange, largely driven by European expansion and colonialism.

What was the triangular transatlantic trade?

The triangular transatlantic trade was a system of trade in the 16th to 19th centuries between Europe, Africa, and the Americas. It involved the exchange of goods, where ships would carry manufactured goods from Europe to Africa, enslaved people from Africa to the Americas, and raw materials from the Americas back to Europe.

What does it show that since 1500 world trade has grown at rates far higher than world GDP?

National economies have become increasingly connected to each other through trade of raw materials, foodstuffs and manufactured commodities.

Explain neoliberal globalization

Neoliberal globalization (1980 →) refers to the promotion of free market policies characterized by reduced state intervention in national economies. It emphasizes deregulation of industries, privatization of state-owned enterprises, and trade liberalization, which encourages open markets and competition across borders. This model has led to increased economic integration among countries, where businesses can operate across international boundaries with fewer restrictions. Proponents argue that it fosters economic growth and efficiency, while critics claim it can increase inequality and undermine labor rights and environmental protections.

Give an example of how globalization can be reversed

Ex. Wars like ww1 and ww2 make trade blockades and boarder restrictions.

Economic crisis can also do it

What was the first global economy (1850-1914)?

Before the First World War trade became much more important with high levels of integration and a boom in international trade.

what are some challenges effecting economic globalization in recent years?

1. Economic sanctions that undermine trade and investment (ex. Russia war with Ukraine)

2. Governments are investing much more in domestic industries through subsidized industrial policies. Ex USA gives billions to domestic production of clean energy and microchips. Ex2. European green deal

3. Changes related to global institutions, The WTO for instance is not as affective anymore.

a) Some countries have tariffs on the rise (although mostly low)

b)Governments are screening investments to avoid foreign capital and control over strategic sectors.

What are the main events of the early modern period and early modern globalization (1500-1800) ?

Discovery of America and the start of new trade networks and colonialism, triangular trade. Market relations generally became more important, due to internal and external (global trade) changes. Societies became increasingly more commercialised. Major political changes also forms more of centralized state management.

What happened when the first Industrial Revolution started (1750-1850)?

Steam powered machines used fossile fuels (coal) which allowed for mechanisation of production and it revolutionised trasnportation.

What happened when the great divergence started (1820)?

Non-industrial societies faced a certain limit to growth. GB started with the IR and was the largest economic power in the 19th century, however after industrialization the US took over. Advanced economies also took control over large parts of the world, mostly in Africa and Asia. This also produced tensions.

What were the economic challenges the world faced during 1914-1945? 5

1. Trade barriers

2. Protectionism

3. Economic crisis 1929

4. Communism

5. WW1 and WW2

Why was there a crisis of inflation in 1970s?

Over-investment and rising energy prices (caused by the oil embargo imposed by the OPEC in 1973