Lecture 1: The Pre-Industrial Economy

Agricultural revolution

Transition from hunting-gathering to the development of agriculture, starting around 10,000 BCE; necessary to achieve industrialization centuries later

Agricultural revolution pros and cons

Pros: increase in food production, increase in population growth, more complex socio-economic structures
Cons: increased pressure on natural resources, less diversified diet/lower nutritional intake, increased exposure to diseases

Characteristics of agrarian societies

1. Low urbanization rates (around 6-8%)

2. Limited division of labor: based on age/gender rather than skills

3. High rate of self-consumption: 90/9/1

4. Low productivity: led to a limited surplus

5. Strong solidarity system (esp. in rural areas)

Urban revolution time, causes

Around 3000 BCE; food surplus caused by AR and the creation of stable societies led to population growth and social hierarchies

Urban revolution pros and cons

Pros: greater division of labor, accumulation of knowledge, more complex socio-economic structures (closer to modern states)

Cons: Higher taxation, more inequality

Proto-divergence

Early differences in development between Eurasia and the rest of the world

Causes of proto-divergence

1. Greater variety (and better) plant/animal species

2. East-West geographical orientation: facilitated crop/human migration, spread of knowledge

3. Less natural barriers

4. Earlier spread from Africa to Eurasia compared to other regions

Drivers of growth in agrarian societies

1. Technology: heavy plough, collar harness, three-year crop rotation, water mills

2. Markets: increased specialization and productivity (Smith), complementarity of town-country, joint advacement of agriculture/manufacturing/trade sectors

Role of the city

1. Specialized in manufactured goods, commercial/ecclesiastical services, exchange of goods

2. Most important cities: became centers for long-distance trade, dissemination of knowledge, commericial and financial capitalism

World-economy vs world economy

World-economy: interconnected, hierarchically organized, self-sufficient economic space, almost entirely separed from all others

World economy: entire interconnected system of the entire globe

World-economy concept creator, time, work

Fernand Braudel, 1979, Civilization and Capitalism 15th-18th Century

Fragility and resilience of (medieval) agrarian societies

Fragility: low productivity left them susceptible to climate/metereological changes → harvest fluctuations → one hardship year was manageable, more than 2 led to famine, aggravated by higher population

Resilience: solidarity system strengthened by family ties and village networks, esp. in rural societies

Malthusian Theory purpose

Attempts to explain the relationship between people and resources

Malthusian theory creator, time, work

Thomas Malthaus, 1789, Essay on the Principle of the Population

Malthusian theory simple idea

Population growth is geometric, food supply/resource growth is arithmetic; there will eventually be an imbalance that will lead to food shortage

Malthusian theory complex idea

If the population grows faster than before, but food production remains the same, the same food will have to be divided by a larger number of people
Consequences: food prices go up, wages go down: people have to work more for less food

Checks, types of checks

Methods to limit population growth
Positive checks: increase the mortality rate: famine, diseases, wars
Preventive checks: decrease the fertility rate: delayed marriage, chastity

Escape of the Malthusian trap, reasons

By England in the 18th century, due to modernization of agriculture and the Industrial Revolution

Context of Black Death

Brought to Europe around 1346-1347 due to the eased exchange of goods/knowledge/pathogens caused by Pax Mongolica. Mongol Empire, largest contiguous in history

Black Death role as accelerator

Exogenous economic and demographic shock, accelerated development of pre-industrial societies in Europe

Black Death pros and cons

Pros: dicreased pressure on natural resources; greater availability of land; increased social mobility and lower inequality; increase in living standards
Cons: slowdown of production system; decrease of international/supra-regional trade; demographic decline and loss of human capital (30-60% of Europe)