GROUP 10

THE WEALTH AND POVERTY

OF NATIONS
DAVID S. LANDES

Phạm Kim Hoa Nguyễn Hà Phương

Đoàn Vũ Nhật Mai Nguyễn Phương Thảo
Nguyễn Mai Ngọc Nguyễn Quốc Việt
 TABLE OF CONTENTS
01 02 03
Nature’s Inequalities Answer to Geography: European Exceptionalism:
Europe and China A Different Path

04 05 06
The Invention of The Great Opening Eastward Ho!
Invention

07
From Discoveries to Empire
“On a map of the world in terms of
product or income per head, the rich
countries lie in the temperate zones,
particularly in the northern
hemisphere; the poor countries, in the
tropics and semitropics.”

—DAVID S.LANDES
 01
Nature’s Inequalities
 The Impact of Geography

● Geography and natural resources are

important factors in a country's economic
success. Some parts of the world, such as
Europe and East Asia, have more
advantageous agricultural, commerce, and
industrial circumstances than others

● Climate, illness, and other environmental

conditions may have a significant influence
on the health, production, and social
structure of a civilization

● The availability of essential resources such

as coal, iron, and oil has been a crucial role in
some countries' industrial growth
The Impact of Geography

● Culture, technology, and institutional elements may all

influence how a society reacts to its surroundings and grows
economically
The work in tropical medicine also faced difficulties in
political and anthropological criticisms, even "perfectly
reasonable" public health interventions may upset
indigenous sensitivities

● The chapter also discusses the influence of colonialism and

imperialism on regional economic growth, claiming that
these elements cannot be understood in isolation from the
larger geographical and ecological environment in which
they happened.
02 Answer to Geography
Europe and China
 Europe
DIFFERENCES China
● Culture: cultural factors, such as the ● Culture: China's emphasis on stability,
willingness to take risks and experiment tradition, and conformity stifled
with new ideas, played a significant role innovation and economic growth
in Europe's economic development
● Institution: Lack of property rights and
● Institution: Europe's institutions, such weak financial institutions in China
as its legal and financial systems, were hindered economic growth
more conducive to economic growth
than China's institutions. The legal and ● Geography: China's geography made it
financial systems in Europe encouraged more difficult to trade with other region:
risk-taking and innovation ➔ China is geographically isolated from
other major civilizations by mountains,
● Geography: Europe's varied landscape deserts, and oceans
and navigable rivers allowed for greater ➔ China's geography made it more
trade and commerce within Europe and vulnerable to invasion and conquest by
with other regions: Navigable rivers such neighboring civilizations, such as the
as Rhine, Danube, Seine; Coastal access Mongols and other Central Asian tribes
*Conclusion of the chapter*

● European model of economic growth

provides valuable lessons for other regions
seeking to achieve sustained economic
growth. He suggests that the right
combination of culture, institutions, and
geography can promote economic growth
and prosperity

● Key factors that explain why Europe and

China developed differently: resources,
culture, institutions, and geography
 European
Exceptionalism
03
A different path
 3.1. The end of invasion

When How Results

In the 10th century, ● The people: let them in, ● Direct: tribes were
Europe was just coming trapped them, fell on domesticated
out of a long torment of them from all sides. ● Indirect: launched
invasion, plunder, and ● The Kings: A mix of Europe on the path of
rapine, by enemies from threat and reward to growth and
all sides (Vikings, Moors, persuade that shear- development
Hungarians). ing sheep at home > Classical economists'
killing sheep abroad view: increase is natural
and will occur wherever
opportunity and security
exist
 3.2 The legacy of ancient Greece and Rome

Legacy Impact
A rich heritage of A fostered spirit of
philosophy, science, inquiry, rationality,
law, art, and literature and creativity, as well
as a sense of
historical continuity
and identity
 3.3 The influence of Christianity

Christianity shaped the moral

and ethical values of Europeans,
as well as their institutions and
practices.

Christianity also encouraged

literacy, education, charity, and
social reform among Europeans,
as well as a sense of
Figure: The Last Supper
universalism and human
dignity.
3.4 The emergence of feudalism and manorialism

Creation of a decentralized and diversified system of

●
●
●
land tenure,
labor relations, and
political authority
“
THE VASSAL RECEIVED
ANY INCOME FROM
THE LAND, HAD
AUTHORITY OVER ITS
Results:
INHABITANTS & COULD
● A degree of local autonomy, self-government, PASS THE SAME
● Experimentation balance of power between RIGHTS ON TO HIS
lords and peasant HEIRS.
3.5 The rise of towns and cities

Role
Centers of commerce,
industry, finance, culture,
and learning

Impacts

Stimulated economic
growth, social mobility, civic
participation, and
intellectual exchange
3.6 The development of representative institutions
and the rule of law
● A tradition of constitutionalism, democracy, and civil rights
● Limitation on the power of kings and nobles
 04
The Invention of
Invention
 Cultural factors affect a nation’s economic success
Location
Religion

Attitudes towards
work and innovation
China
Western
Level of trust in society Europe
Japan

Western The importance of the Protestant China The role of Confucianism in

work ethic and scientific inquiry in promoting education and
Europe
Western Europe's economic diligence
ascendancy
 Culture is not the only factor

Negative Impacts Other factors Some questions

● Hindering innovation ● A blend of different ● Not proper attention to
● Taking away factors creates a the structural factors
individual freedoms unique blend for ● Treats cultural
development practices as static
● The importance of entities
historical and cultural
No formula forces in shaping
● Appreciation for economic differences
diversity and the across nations
acknowledgment
05 The Great
Opening
 Europe expansion in 16th and 17th century

Mars
Ceres
Venus

Christopher Columbus
 Factors contributing to Europe’s rise to power

Technological innovation Military superiority Political organization

● Significant advances in ● Technological innovation ● pool their resources and
mathematics, astronomy, gave European a distinct cooperate in ways that other
physics, and chemistry military advantage regions could not.
paving the way for the ● Europe was enabled to ● finance expensive
expeditions and establish
Industrial Revolution conquer new territories
trading networks that
and establish trading
spanned the globe.
relationships ● developed legal systems and
institutions that supported
trade and commerce, paving
the way for the rise of
capitalism.
 Consequences

Positive Negative
Significant improvements in living standards ● Exploitation and subjugation of many non-European
and economic growth in Europe and other regions peoples and cultures
that participated in the global economic system ● Environmental degradation and resource depletion
Eastward 06
Ho!
 China
● Ming Dynasty in China, which he
explains was a time of great prosperity
and growth in the country.

● The Chinese were responsible for

many important technological
advancements, including the
invention of gunpowder, the printing
press, and the compass.

● However, the Ming Dynasty was

eventually weakened by a
combination of factors, including
corruption, political instability, and a
lack of innovation.
Paper Making (105 A.C)
 Japan
● A "closed" society

● Resistant to outside influences, but

eventually became more open to
trade and cultural exchange.

● Japan's success was due to the

efforts of the shogun, who worked
to centralize power and promote
economic growth.

● Japan's isolationist policies

A Black Ship of Commodore Perry, who forced prevented it from fully participating
in the global economy, and that this
Japan open to trade with the outside world. contributed to its decline in the 19th
 Overall, Landes suggests that China and Japan both
had the potential to become global economic powers
during the early modern period, but were ultimately
unable to keep up with the rapid changes occurring in
Europe. This was due political instability, corruption,
and a lack of openness to outside influences.
 07
From Discoveries to
Empire
*European exploration and colonization*

Key Innovations
European explorers used many innovative
technologies to aid their expeditions, such as
improvements to shipbuilding, navigation, and
weaponry. The development of new ships like
caravels, galleons, and carracks enabled faster
and safer sea travel. Advancements in navigation
tools such as quadrants, compasses, and
astrolabes made it easier to determine position
and chart new territories. Firearms were also
introduced, giving European soldiers an
advantage over opponents who were not
equipped with such advanced weaponry.
Economic Motives

European expansion was driven by the

desire to access new markets and
resources for the purpose of expanding
trade and manufacturing. Colonizers
sought new territories for commercial
ventures and raw materials for their
factories back in Europe. They also
sought to create new markets for their
goods, which helped to fuel their Christopher Columbus
economic growth.
Negative Consequences Continuing Impact

The effects of European colonization The effects of colonization can still

had widespread negative impacts, be felt in many regions and
including the enslavement and countries worldwide. Colossal
exploitation of indigenous peoples, inequalities, such as poor access to
the spread of disease and epidemics, quality education, inadequate
and the destruction of existing social healthcare, low income, and social
and political structures. This also led unrest, are symptoms of former
to the displacement of millions of colonization. Even centuries later,
people, loss of cultural heritage, and the legacies of colonization can still
physical and emotional scars still felt cause conflicts, tensions, and
today. discrimination.
World History - Dr. Pham Thi Cam Anh

The WEALTH AND

POVERTY OF NATIONs
Group 12
 CHAPTER 8:
BITTERSWEET 1. Shift in Spanish Interests and
ISLES the Rise of Sugar Plantations in
the Caribbean

2. Exploitation and Missed

Economic Potential in the
Caribbean

3. Sugar Industry Dominance

and Its Consequences
 Shift in Spanish Interests and the Rise of Sugar
Plantations in the Caribbean

Spanish conquistadors Importation of European Spanish lost interest in

focused on the Caribbean food and introduction of the Caribbean, turned
islands for gold and cattle. attention to settling the
elimination of native mainland as nobles and
populations. landowners.
 Exploitation and Missed Economic
Potential in the Caribbean

Spanish Portuguese and Dutch gained

colonization in the Dutch took the lead control over
Caribbean based on in sugar some islands in
exploiting plantations in the Lesser
indigenous people. Brazil and African- Antilles.
Atlantic islands.
 Sugar Industry Dominance and Its
Consequences

English Concentration of French Slave uprising in

established landholding, involvement in the Haiti resulted in
settler colonies, replacement of Caribbean, Haiti the deaths of all
transitioned to indentured (Saint-Domingue) white inhabitants
sugar production servants with as a significant on the island.
for higher African slaves. sugar producer.
profitability.

1 Portugal's
Expansion and
2 Key Aspects of
Portuguese
3 Challenges and
Decline of
Empire- Expansion Portuguese
Building in the Dominance
15th Century

CHAPTER 9: EMPIRE IN THE EAST

 PORTUGAL'S Despite being a small country
EXPANSION AND with limited resources, Portugal
managed to establish a far-
EMPIRE-BUILDING reaching network of dominion
IN THE 15TH from Brazil to the Far East.
CENTURY
 1. Enterprise and Pragmatism:

The Portuguese were known for their

enterprise and toughness, overcoming their

KEY ASPECTS limitations to expand their dominion.

OF They drew in outsiders for their money,

know-how, and labor, demonstrating a
PORTUGUESE pragmatic approach to achieve their goals.

EXPANSION Engaging in trade, utilizing slaves as workers

and fighters, and embracing miscegenation
were among their strategies.
2. Role of Religion:
(1) Religion played a significant role in Portuguese exploration,
with priests and friars accompanying them on voyages.

(2) The presence of religious figures ensured safety, propagated the

faith, and offered personal salvation.

(3) However, religious commitment also led to conflicts with

Muslims, resulting in wars and a reputation for brutality.
 CHALLENGES AND DECLINE
OF PORTUGUESE DOMINANCE

Competition
from European
Powers: Over time, the These powers entered The competition

Portuguese faced the trade and posed obstacles to
challenges from other colonial expansion Portugal's continued

European powers, arena, gradually expansion and

such as the Dutch diminishing influence.
and English. Portuguese

dominance.

 CHALLENGES AND DECLINE

OF PORTUGUESE DOMINANCE
Loss of
dominance in
spice trade Spices, particularly Seeking direct access Unfortunately, the

pepper, held immense to spices from Asia, Portuguese gradually

value in European the Portuguese lost their dominance
trade for their ability bypassed traditional in the spice trade,
to preserve and flavor trade routes, leading which had
food. to conflicts with significant economic

Muslim merchants. implications.

Chapter 10
For Love of Gain
 tHIS CHAPTER COVERS
COLONIAL COUNTRY COMMAND
HOLLAND
ADVENTURE TRADE ECONOMY
The Netherlands Voyages of Operation of the
The downfall of
in the 16th exploration and Dutch East India
the VOC
century trade Company (VOC)
 Holland
Dutch in 16th & Became a Conflicts and Capital of the
17th century political pawn rebellion confederation

Dutch was the Spain, under Spain enforced The rebellion

most important Charles V, gained Catholicism & resulted in the
industrial- control of Holland control the Low independence of
commercial center Countries led to a the Northern
of Europe rebellion provinces,
Amsterdam
became the
capital
 COLONIAL ADVENTURE
Seafarers & Vereenigde Oost- CHALLENGES &
traders indische MAKING PROFITS
Spain's annexation of Compagnie (VOC) Duplicty, competition &
Portugal and the The Dutch then began piracy
closing of ports to voyages of exploration Maximize profits by
Dutch ships in 1585 and trade, leading to excluding competitors,
led the Dutch to the formation of VOC controlling prices
become seafarers and
traders
 COUNTRY TRADE
Engagement DOMINANCE CONFLICTS PROBLEMS
Engaged in Exclude Battles against Corruption and
commerce and competitors, Portuguese, self-serving
trade particularly maintain profit Spanish, and behavior
in the East Indies differentials, English forces Monopolistic
Political rivalries, territorial Engaged in practices
competition with conquests piracy and pre-
European Main base in emptive strikes
powers Batavia, influence
over various
regions
 COMMAND ECONOMY

COMMAND DOWNFALL InDEPENDENCE

Command economy High dividends despite Maintained control
turned the archipelago falling trade volume until World War II
into a large plantation and profits Granted independence
Monopolistic practices Political complications in 1949, leading to the
led to significant accelerated the formation of the
distortions downfall Indonesian republic
Chapter 11
Deception, Drama & The
Dawn of an Empire
1.A Glittering Spark 2.Intruders Turn Traders 3.Tides of Power

6. The East India

4.Shattered Trust 5. The Great Deception Company: Rise
from the Ashes

7. Unveiling Hidden Lessons

1.A Glittering Spark: The English seizure of the Portuguese ship, Madré de
Deus, initiates a fervent interest in Eastern riches, prompting an era of
exploration and colonialism.

2.Intruders Turn Traders: The English and Dutch transform from pirates
to traders in the Indian Ocean, establishing strongholds, forming
alliances, and later using force to protect interests.

3.Intruders Turn Traders: The Mughal Empire's decline offers foreign

powers an opportunity to interfere in Indian politics and governance.
4.Shattered Trust: The English seizure of the Portuguese ship, Madré de
Deus, initiates a fervent interest in Eastern riches, prompting an era of
exploration and colonialism.
5. The Great Deception: The English and Dutch transform from pirates to
traders in the Indian Ocean, establishing strongholds, forming alliances,
and later using force to protect interests.

6. The East India Company: Rise from the Ashes: The Mughal Empire's
decline offers foreign powers an opportunity to interfere in Indian politics
and governance.

Unveiling Hidden Lessons: Historian Macaulay critiques Clive's tactics, raising

probing questions about honesty, betrayal, and the rise and fall of empires.
Southern Europe (Spain, Portugal, Italy)
New World is an invitation to wealth, pomp, and pretension - an older way of
doing thing
Spain and Portugal had the capital thanks to the empire, but
- Spain chose to spend—on luxury and war (most wasteful of uses, destroys
rather than builds)
- Inevitable unevenness and shortage of resources lead to ruthless irrationality,
which simply increases costs
=> Spain spent all the more freely because its wealth was unexpected and
unearned.
Spain had money so it didn’t learn to make products and was efficient in doing
so.
Meanwhile, the wealth of the Indies went less and less to Spanish industry
because the Spanish did not have to make things any more (they buy them)
In the mid seventeenth century, the Spanish crown was deep in debt, with
bankruptcies in 1557, 1575, and 1597 -> The country entered upon a long
decline
=> Easy money is bad for you.
- They indulged their penchant for status, leisure, and enjoyment
- They have easy riches, unearned wealth.
=> Portugal and Spain ended up as the biggest losers
Northern Europe (Britain, Holland)

New World is a chance to do new things in new ways, to catch the wave of
technological progress
Their own empires in the New World are not endowed with gold and silver.
- They focus on investing in production
- Looting and pillaging when the opportunity offered, but they also built largely
on renewable harvests and continuing industry rather than on depletable
minerals
=> Britain and Holland become richer and soon toward Industrial Revolution
- Europe's shift in economic gravity northward obviously transcends the
inglorious Spanish fiasco.
- They did the work learned and kept good habits, while seeking new ways to do
the job faster and better
- They built on work.
=> Britain and Holland took over the crown
Reasoning behind the direction of the two sides leads to
some fall from high estate and others rise?

The most provocative explanation is the one offered by the German

social scientist Max Weber.

Protestantism Catholic
(Calvinist branch)
- Promoted the rise of modern - Greater access of Church in
capitalism, that is, the industrial Catholic countries to the
capitalism by defining and older liberal professions and
sanctioning an ethic of the governing bureaucracy,
everyday behavior that and hence their preference
conducted to business success for a different kind of
- Protestantism produced a new schooling.
kind of businessman, a different - Much was dictated by the
kind of person, one who aimed fears of the clerical hierarchy,
to live and work a certain way. by their distaste for the
- Help business and capital findings and paradigms of a
accumulation science that negated
- Do not aim at rich and riches religious doctrine Max Weber
were at best a by-product. 21/4/1864 - 14/6/1920
.. The same with the countries as well

Protestantism ((develop in Catholic Countries

Northern Europe) (Southern europe)
- Religious passion and military
- Gave a big boost to literacy, crusade drove away the
spawned dissents and heresies, outsiders (Jews and then the
- Promoted the skepticism and conversos)
refusal of authority that is at the - Discouraged the pursuit of the
heart of the scientific endeavor strange and potentially heretical
=> Success toward Industrial - Instead of meeting the
Revolution challenge, responded by closure
and censure.
- Church and civil authorities
joined to control thought,
knowledge, and belief.
- Scientific works banned
=> Miss the train of scientific Max Weber
revolution 21/4/1864 - 14/6/1920
David. S Landes agreed with this idea:
Empirical level: records show that Protestant merchants and manufacturers played a leading role in
trade, banking, and industry.
Theoretical level: The heart of the matter lay indeed in the making of a new kind of man—rational,
ordered, diligent, productive. Protestantism generalized them among its adherents, who judged one
another by conformity to these standards

He believes there are two characteristic of Protestantism reflect this outcome

(1) Instruction and literacy
Good Protestants were expected to read the holy scriptures for themselves.
Greater literacy and a larger pool of candidates for advanced schooling
Greater assurance of continuity of literacy from generation to generation.
(2) Unobtrusive evidence: the making and buying of clocks and watches
Most clockmakers were Protestant
The use of these instruments of time measurement and their diffusion to rural areas was far more
advanced in Britain and Holland than in Catholic countries.
Nothing testifies so much as time sensibility to the "urbanization" of rural society, with all that that
implies for rapid diffusion of values and tastes.

=>"Ideal type" of capitalist could be found only among Calvinists and their
later sectarian avatars
=> They created a new economy (a new mode of production) that we
know as (industrial) capitalism.
 Chapter
14

Why Europe?
Why Then?
 Main findings

The contribution of How these factors The impact of

cultural, political, create the conditions the Industrial
economic,... factors necessary for the Revolution
to Europe's success Industrial Revolution on the world
in industrialization in Europe
 Aspects of Thier contribution to the
European societies Industrial Revolution

European citizens being interested in

Tradition of scientific inquiry developing understanding the natural world
since the Renaissance Advancements in fields such as chemistry,
physics, and biology

Culture of innovation and entrepreneurship, The development of new technologies and

followed by the traits of risk-taking and business practices being fueled
experimentation

Investment in long-term projects like

Stable and secure political systems
industrialization being encouraged

Advantageous location with Asia's rich

Experience and trade opportunities with
culture and trade networks and America's
both regions
abundant natural resources
 Why Europe?
Why Then?
Although there were some negative factors in Europe's
development (exploitation of colonies and the
mistreatment of workers in factories), the Industrial
Revolution was a positive transformative force that
improved the lives of millions of people around the world.
 The Wealth and
Poverty of Nations
Group 14
 Table of contents
15 16 17 18
Britain and You Need Money The Wealth of
the Others Pursuit of Albion to Make Money Knowledge

19 20 21 TBC
Frontiers
The South
American Way
Celestial Empire:
Stasis and Retreat
.....
 BRITAIN AND THE
OTHERS
Big question: Why did Industrial Revolution
happen in Britain, not any other country?
In Europe, early 18th century: Britain was well ahead:
development in cottage manufacture, fossil fuels,
textiles, iron
=> cores of industrialization
efficiency in: commercial agriculture & transport
=> division of labor
 BUT WHY?
Britain bore traits of a society that theoretically
suits to pursue material progress and general
enrichment.
self-consciousness as a nation
British Guards
adaptability
freedom and security
Besides:
absence of irrational constraints (especially
religious)
consciousness of time & effort to save time
Canterbury Cathedral
 WHY NOT INDIA?
Role of different stakeholders
the workers (spinners and weavers)
the middlemen
the European traders and chartered
East India Company, London
companies

Political considerations

Technological limitations

Social and cultural context

British India
 PURSUIT OF ALBION
Big question: How did other nations
follow Britain?

1. Reactions of other countries

2. Theories of development
3. Factors determining Machine-readiness
 Reactions of other countries
Change to the world
the relations of nations and states
the goals and tasks of political economy: For reasons of power, if not of wealth, were transformed
→ divided between one front-runner (Britain) and pursuers

Attention of commercial and political rivals: Spain, Holland, France

Fear of England’s commercial power
Criticism of English commercial protectionism
→ Britain became the principal target of emulation

However, obstacles prevented follower countries from catching up:

inappropriate encouragements
unreadiness of the countries themselves
political turmoil
French Revolution
 “"It is a question of these laws themselves, of
these tendencies working with iron necessity
towards inevitable results. The country that
is more developed industrially only shows to
the less developed, the image of its own
future." - Karl Max

Karl Marx Adam Smith

Theories of Karl Marx: Capitalist production had its laws

Adam Smith's: "natural progress of opulence"
Developemnt Landes (the author): no law of development
 Factors determining
Machine-readiness
In Europe of 1815:
the machine-readiest societies lay in the northwest
readiness decreased as one moved east and south
(“developmental gradient”)

WHY?
“the medieval legacy”
the status of the peasantry
the organization of manufacture
boundaries and barriers in transport and travel

HOWEVER:
Disadvantaged countries can still catch up owing to cultural preparation: high levels of literacy, political stability
and public order.
E.g. Scandinavian countries
You need money to
make money
Big question: How countries financed
their industrial revolutions?

1. Personal investment
2. Financial intermediaries and private credit
3. Government assistance
4. International capital flows
Jean-Jacques Desandrouin François de Wendel Akinfiy Demidov Prince Wilhelm Heinrich

Wealth is accumulated in the upper classes:

1. Personal 1. Landowners: skeptical of Industry and Trade
Investment 2. Gentry and Aristocrats: provide the money
3. Bourgeois Partners: do the actual "dirty work"
 2. FINANCIAL INTERMEDIARIES
AND PRIVATE CREDIT
Formation of Private Banks Network
capable of financing medium- and long-
term investments in industry Headquarters of Crédit Mobilier

tend to discriminate by religion and culture

=> Development banks

French Crédit Mobilier

Germany Universal Banks

Darmstädter und Nationalbank
 3. Government assistance
Internal affairs: West-East Gradient
=> Varying view of government’s intervention

International trade: Russo-Japanese War

From Protectionism to Liberalization

=> Most-Favored-Nation Principle

Case of Russia: Epitome of state-driven

development
=> October Revolution October Revolution
4. International
capital flows
Flows of capital
+ East to West
+ More to less developed
+ Spread of Industrial
Revolution

Biggest Impediment:
Social, Cultural &
Technological Unreadiness
 “None of this (marriage) was
accidental, not even the
romance”

Eugène Schneider Adolphe Schneider

Story of How the Schneider brothers revitalize

Tales of Le the Le Creusot’s ironworks and Seillière bank

Creusot through their cleaver alliances with wealthy

merchants and influential families.
Alexander Gerschenkron Economic Backwardness in
Historical Perspective
 Chapter 18: The Wealth of Knowledge
DIFFUSION OF KNOWLEDGE

John Cockerills John Holker

John Law Matthew Boulton Emigration: Brain Drain

Government Spy Division of Labor
Agents Solicitation of Emigrants: John Holker, the Cockerills
 Chap 18: The Wealth of Knowledge
MARRIAGE OF SCIENCE AND TECHNICS

SCHOOLS AND BIG RETURNS IN

RELIANCE ON FORMAL CHEMICALS AND SECOND INDUSTRIAL
EDUCATION ELECTRICITY REVOLUTION

France: Ecole Polytechnique - The use of liquid and gas fuels The role of formally
leading institution for scientific in internal combustion transmitted knowledge.
engines.
and technical education. The lack of standardization in
The distribution of energy and
Germany: Gewerbeschulen Britain.
power via electric current.
and Technische Hochschulen - Telephone and radio.
=> The need for a second
Imitators. Machines driven by new industrial revolution
Consequences of This Reliance sources of apower: motor
on Formal Education: New vehicles and domestic
branches of Knowledge. appliances.
=>Result of a global collaboration.
 Chap 18: The Wealth of Knowledge
GENIUS IS NOT ENOUGH
How the dye industry shifted from Britain to Germany

MID 19TH EARLY 20TH

CENTURY 1856 1870S CENTURY

The dye industry was William Henry Perkin In Germany: The dye industry shifted
dominated by natural dyes, accidentally discovered Chemists made from Britain to
which were expensive and the first synthetic dye significant advancements Germany.
limited in their range of (low cost, vibrant color). Access to cheap energy Germany became the
available colors. The British dominated and raw materials world's top producer of
the production of Favorable government synthetic dyes.
synthetic dyes. policies
Companies (BASF and
Bayer) dominated the
production of synthetic
dyes globally.
 Chapter 19: Frontier of the USA
The entrance of Industrial Revolution
Contradiction of factor productions

Smallholders and well-paid workers

Mass consumption & production
Chapter 19: Frontier of the USA

Adam Smith's great treatise (1776)

Activist British ministers

The Boston Gazelle

 Chapter 20: The South American Way

LATIN AMERICA & NORTH AMERICA
Latin America was not initially poorer than North America in the 17th century, due to the abundant silver
and gold mines and other valuable resources. However, over time, North America far surpassed Latin
America in wealth.
Different colonists - different skills Different colonists - different openness
North America was more successful because its North American colonists - a society of dissent and
colonists were more skilled, curious, and politically openness to new ideas - allow them to challenge
capable than Spanish and Portuguese - coming to their rulers and pick and define their own issues.
the New World solely to get rich. Latin American - weaknesses and misfortunes of
Spain and Portugal - result in anarchic warlordism
and economic retardation.

The new states had no direction, identity, or measure of performance, and were often ruled by small groups
of corrupt individuals. Besides, after gaining independence, Latin American countries lacked a vision for
economic development, continuing to rely on mining, agriculture, and forestry industries for foreign trade.
 Chapter 20: The South American Way
ARGENTINA - A LATIN AMERICAN COUNTRY

Land Policies
It is designed to keep settlers out, with most of the soil going to placemen
and strongmen by gift or bargain prices. Efforts to recruit settlers abroad
ran up against social and political realities, including religious restrictions
and local prejudice.

Immigration
Immigration to Argentina did not pick up until the last quarter of the
century when wheat cultivation took off. Many were seasonal agricultural
workers and few became citizens. The productivity and income increased
substantially but were lower than those of other frontier societies.

Impact of Economic Growth

Economic growth continued in Argentina into the 20th century, in
agriculture & young industrial sector. However, the stunted industrial
sector lacked innovation and investment in human capital and suffered
from primitive working conditions.
 Chapter 20: The South American Way

DEPENDENCY THEORY THE PORTUGUESE- PARAGUAY

BRAZILIAN WAY
The failure of Latin American Freyre distinguishes between Paraguay was an exceptional
development has been attributed to Spanish and Portuguese colonial country in South America with a
"dependency" a vulnerability policies, noting the latter's emphasis unique Indian (Guarani) character.
where one does not control their on religion to unite Brazilians Paraguay, seeking economic growth
fate and is exploited by stronger against Protestantism, comparing and defense, purchased European
nations. The spread of dependency their religious controls to current- tools, machines, and weapons,
doctrines has fostered economic day health inspectors and police building fortresses such as the one
impotence and a propensity to find functionaries. →
at Humaita threaten the
fault with everyone but oneself. neighboring countries, leading to a
disastrous conflict.
Chapter 21: Celestial Empire: Stasis and Retreat
Chapter focuses on China's economic development from the 15th to 19th
century (Ming and Qing dynasties).
China's early economic success was attributed to advanced agricultural
techniques, sophisticated bureaucracy, and a vibrant commercial sector.
However, China's growth stagnated during the Ming dynasty, which
became inward-looking and resistant to change, unlike the European
Renaissance.
The Ming dynasty implemented policies that limited the power of
merchants and restricted foreign trade, leading to a decline in China's
commercial sector and quality of goods.
Chapter 21: Celestial Empire: Stasis and Retreat
The Qing dynasty, dominated by the Manchu ruling class, was even more
inward-looking than the Ming, leading to a further decline in the economy
and falling behind Europe in technological innovation and
industrialization.
Lack of interest in foreign trade and a rigid social hierarchy that stifled
innovation and entrepreneurship. Ex: birth status, not talent oriented.
=>Landes argues that China's economic decline was not inevitable but due to
faulty policy decisions.
The chapter highlights the importance of openness to trade and innovation
and the dangers of inward-looking policies and rigid social hierarchies.
THE WEALTH
AND POVERTY
OF NATIONS

GRO`UP 15
DAVID S. LANDES
 Table of Contents

22
JAPAN: AND THE LAST
23
THE MEIJI RESTORATION
24
HISTORY GONE WRONG
SHALL BE FIRST

25
EMPIRE AND AFTER
26
LOSS OF LEADERSHIP
27
WINNERS AND…

28
LOSERS
29
HOW DID WE GET HERE?

WHERE ARE WE GOING?
“The stress on observation and the reality
principle—you can believe what you see, so
long as you see what I see—paid off beyond
understanding.”
― David S. Landes, The Wealth and Poverty
of Nations: Why Some Are So Rich and
Some So Poor
 CHAPTER 22
KEY TAKEAWAYS

Mid 19th century: Opened

the country to foreign
goods.

Japan: And the Cotton spinning became the

last shall be
leading sector of Japan
thanks to pre-existing

first
network of machine ships
and skilled labor.

Commercial revolution: new

techniques of buying,
Advances over Europe thanks to:
distribution and remittance
+ 50 years without war or revolution
Specialization, division of + More accessible water transport
labor and growing demand: + An unified language and culture
Adam Smith
+ Abolition of old trade barriers
+ Adoption of comment merchant ethic
 A range of reforms aimed at

HISTORY LESSON | BOCKFORD SCHOOL

CHAPTER 23
modernizing Japan

The Meiji centralized government

Restoration
adopted Western technology and
ideas.
created a modern education system.
encouraged the formation of private
The Meiji Restoration in Japan businesses and promoted
occurred in 1868. international trade.
This marked a turning point in Japan's
history, from a feudal society to a Significant challenges were overcome
modern industrial power. through their strong leadership and
willingness to adapt

04
 History Gone Wrong?

HISTORY LESSON | BOCKFORD SCHOOL

CHAPTER 24

David Landes examines the impact of historical events on the

economic development and disparities among nations in this chapter.

Landes begins by discussing the influence of geography and climate on a nation's economic
trajectory.

The chapter delves into the history of colonization and imperialism, exploring how these
factors contributed to the divergence of wealth and poverty between nations.

Landes also analyzes the role of culture and religion in shaping economic outcomes.

He examines how cultural attitudes toward work, innovation, education, and gender
equality can either facilitate or impede economic development.

04 The chapter concludes by emphasizing the importance of understanding history.

 HISTORY LESSON | BOCKFORD SCHOOL
CHAPTER 25
1. THE DEFINITIONS
Empire = invention/by-product of capitalism

Empire The definitions of empire?

Imperialism = the dominance of one country over

and
others.
How it was founded and eventually
Colonialism = any economically or politically
collaped?

After
dependent condition
What were the impacts of empire?

2. Founded and collapsed

3. Consequences
Begin in 15th centry, ended in 20th century = 500 years of An explosion of ill-will against the former masters and
existence their representatives
extract wealth and labor, more than was available at a
European imperialism goes back to the Middle Ages free market price
material and psychological suffering for the subject
The aim of imperialism: seek local supply of labor, food, people
resources, trade, etc, … but also material gains, direct or indirect

A paradox: Empire collapsed but prosperity still happened in

once colonist nations, while countries once exploited struggled.
 HISTORY LESSON | BOCKFORD SCHOOL
CHAPTER 26

LOSS OF In this chapter economist David S. Landes discusses the concept of loss of leadership as

LEADERSHIP one of the factors that can contribute to the decline of nations.

THE NATURE OF LOSS OF LEADERSHIP FACTORS BEHIND THE

COMPETITIVE MARKET MEANING DECLINE OF NATIONS

The chapter discusses the According to Landes, a loss of leadership

The chapter touches on economic
nature of the market. It occurs when a nation fails to adapt to
contraction, urbanization trends,
explores the envy and rivalry changing circumstances or falls behind in and the decline of British industry
among European nations crucial areas. This can happen due to a despite favorable conditions.
during periods of state-
variety of factors, including complacency, Overall, it emphasizes the complex
building and economic
cultural or institutional barriers, dynamics of economic performance
advancements of the 17th
inadequate investment in education and and the interplay between politics
century, with the example of
research, or an inability to embrace and economics.
Britain and Holland.
technological advancements.
 HISTORY LESSON | BOCKFORD SCHOOL
CHAPTER 27

WINNERS This chapter discusses the supposed

winners in the new world order in
The 1914 Great War - 10 million deaths and
Europe was devastated.
AND… the 20th century. Germany invaded France and wasted one of the
richest industrial regions. Armistice in 1918, Germany
lost but didn’t admit they were defeated. The seed of
fascism started to develop.
In Russia, the Tsarist collapsed, and Bolshevist regime
took power.
The World War II, 1945 - 55 millions deaths
Prior to WWII:
+ Time for European restoration and repair, material improvement
and peace.
>< Fascism and Bolshevism sweeping across the continent.
Japan industrial rise, and American fall after WWII
After WWII: Japan benefited from Korean wars, and Ford and GM
+ Germany suffered immense war damage outsourcing. In addition, US government also provided
+ Japan was thriving lucrative subsidy for Japanese cars and duties on import.
Japanese also utilized just-in-time system to optimize its
+ France also had 30 wonderful years.
industrial output.
American failure was due to 4 reasons: Complacency,
want of empathy, residual, two-faced reliance on
government support, short and selfish time horizon.
 Egypt's decision to invest in spinning mills
after WWII resulted in poor-quality cloth
CHAPTER 28 production, coinciding with the loss of their
export market for raw cotton.

Latin America witnessed a delayed onset of

industrialization, due to factors such as high

LOSERS tariffs, discriminatory legislation, and

regulations that imposed non-tariff barriers
on imports.

In 1994-95, Mexico faced a peso crisis, which

occurred shortly after NAFTA was ratified.
Russia, Romania, and North Korea faced
backward technology, poor performance,
environmental neglect, and disillusionment
with the system.

Africa faces challenges as freedom did not

bring expected happiness and prosperity.

Algeria faced challenges as its industrial

products were not exportable, leading to the
decline of factories in the 1970s.

Brazil's experience demonstrates that a

strong currency is not a panacea for all
economic problems.
 CHAPTER 29

HOW DID WE GET HERE?

WHERE ARE WE GOING?
In conclusion, D.Landes discusses the transition from a world of empires
and kingdoms to a world of nation-states, highlighting the growth in
population and technological advancements

The uncertainty of the future and the debate between state intervention
and market signals in achieving power, wealth, distributive justice, and
efficiency are mentioned.