Kaarten: Chapter 2 (Great Divergence) | Quizlet

What is "The Great Divergence"?

The period during which Europe was significantly wealthier and more powerful than the rest of the world. / It refers to the period between 1500-1820 where significant differences in economic growth appeared between regions, particularly Europe and China, culminating in the Industrial Revolution.

What are the internal explanations for the Great Divergence?

1. Political and institutional changes

2. Cultural factors (e.g., work ethic, risk-taking)

3. Economic innovations (e.g., proto-industrialization, market emergence)

What role did external factors play in the Great Divergence?

External factors like benefits from international trade networks and colonial resources contributed to Europe's economic growth.

Who introduced the concept of the Great Divergence?

Kenneth Pomeranz in his book The Great Divergence (2000).

What is Pomeranz's "resemblance thesis"?

He argued that Europe and China were more alike than previously thought, with regions like the Yangtze Delta comparable to England, but Europe had fortunate access to coal and colonial resources.

How does the Malthusian theory explain pre-industrial limits to growth?

Population growth outpaces food production, leading to "natural checks" like famine, poverty, and increased mortality.

What was the economic impact of the Black Death in Europe?

The population collapse caused labor shortages, leading to higher real wages and the decline of serfdom in many areas.

What is the "Little Divergence"?

The economic divergence within Europe, with Northwestern Europe (e.g., England, Netherlands) experiencing sustained growth while Southern Europe stagnated.

How did institutions contribute to Europe's economic growth?

Institutions like property rights and rule of law fostered economic freedom, encouraging innovation and investment.

What was the significance of joint-stock companies during the Great Divergence?

They lowered business risks, pooled resources, and supported large-scale trade, exemplified by the Dutch East India Company.

What factors hindered China's economic growth before 1820?

1. Centralized autocracy stifled innovation

2. Clan-based credit systems limited economic freedom

3. Lack of colonial expansion and trade benefits compared to Europe

What was the role of the consumer revolution in Europe's economic growth?

Rising incomes led to increased consumption of goods like tea, coffee, and sugar, fueling demand and encouraging harder work and longer hours.

How did the textile industry exemplify Europe's industrial growth?

European cotton industries developed by importing raw materials and imposing tariffs on imported textiles, leading to technological innovations during the Industrial Revolution.

Why is culture considered a controversial explanation for the Great Divergence?

It risks ethnocentric arguments and overlooks economic incentives driving work ethic and growth.

What was the "Malthusian trap" China was stuck in?

China's population growth outpaced agricultural productivity, keeping incomes low despite some favorable institutions.

How did the Industrial Revolution widen the Great Divergence?

It placed Europe and the US on trajectories of sustained economic growth while other regions lagged behind, solidifying economic disparities.

What is Thomas Malthus's main argument in Essay on the Principle of Population?

Population growth exceeds the earth's capacity to produce food, leading to inevitable checks like famine and poverty unless technological advances occur.

How did political competition among European states foster innovation?

Fragmentation and frequent wars pushed states to negotiate with subjects, granting economic freedoms and encouraging technological progress.

What role did Amsterdam play during the Dutch Golden Age?

Amsterdam became a major urban center due to trade, with its population growing from 54,000 to 200,000 in the 17th century.

What is the significance of the Grand Canal in China's economic history?

It facilitated market integration by connecting northern and southern China, enabling the transport of large quantities of goods like rice.

How did enclosure impact pre-industrial European economies?

It privatized communal lands, forcing many farmers to seek paid labor while enabling landowners to use land for commercial purposes.

What is the rule of law index, and how does it relate to economic growth?

It measures the degree of legal fairness and predictability, which correlates strongly with GDP per capita as per institutional economics.

Why was the Qing Dynasty's long period of peace economically significant?

It allowed population growth and market integration but failed to spur innovation or industrial growth.

What is the relationship between urbanization and trade during the Great Divergence?

Long-distance trade with colonies spurred urbanization, creating jobs and wealth, particularly in cities like London and Amsterdam.

What was the impact of the Opium Wars on China's economy?

Western interventions destabilized China's economy and politics, forcing it to open markets under unfavorable terms.

What caused the First Opium War (1839-1842)?

The Qing Dynasty attempted to suppress the British opium trade due to widespread addiction and economic issues. Britain retaliated militarily after China confiscated and destroyed opium stocks.

What were the outcomes of the Opium Wars?

1. China signed unequal treaties like the Treaty of Nanking (1842) and Treaty of Tientsin (1858).

2. Britain gained Hong Kong, legal opium trade, and opened several Chinese ports to Western trade.

3. China suffered economic exploitation and internal instability, marking the start of its Century of Humiliation.

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