world growth presentation

8/17/2019 World Growth Presentation

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World Growth since 1800

Presented by Anam Sohail

Rubail Shahid


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Introduction

By the mid-nineteenth century the efficiency of the n!lisheconomy was clearly !rowin! at an un"recedented "ace#

Im"ro$ement in efficiency was based on %nowled!e creation&rather than the accumulation of "hysical ca"ital or thee'"loitation of natural resources#

(he increasin! "ros"erity and economic "ower of Britainim"ressed both forei!n !o$ernments and indi$iduals&es"ecially#

Since it was accom"anied by !rowin! military and "olitical"ower#

(hus there were both "ri$ate and !o$ernmental attem"ts toim"ort the new British technolo!ies#


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(he Instruments ofGlobali)ation

In the late ei!hteenth and early nineteenth centuries a seriesof technolo!ical& or!ani)ational& and "olitical de$elo"mentsseemed to im"ly the comin! inte!ration of all countries into anew industriali)ed world#

(he technolo!ical chan!es were the de$elo"ment of

railways&

steamshi"s&

the tele!ra"h&

the mechani)ed factory#

(he or!ani)ational chan!e was the de$elo"ment of

s"eciali)ed machine-buildin! firms# (he "olitical chan!es were the e'tension of uro"ean colonial

em"ires to lar!e "arts of Africa and Asia& and internal "oliticalde$elo"ments within uro"e#


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(he world before 1800 was one in which information and"eo"le tra$eled at astonishin!ly slow s"eeds#

(he estimated a$era!e transmittal time& shown in table was*+ days# (hus alon! the ma,or trade routes of the Romanm"ire information flowed at an a$era!e s"eed of 1 mile "erhour#


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(hus in the althusian era "eo"le li$ed in a world whereinformation s"read so slowly that many died fi!htin! o$erissues that had already been decided#

Information flows were not much faster in 1800 than in the

classical world#

In the mid-nineteenth century the introduction of thetele!ra"h in 18..& and "articularly the layin! of the firstundersea tele!ra"h cable between /rance and n!land in

18*1& chan!ed by a factor of nearly 100 the s"eed of tra$elof information#


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(he cost of carria!e for !oods also declined dramatically inthe nineteenth century& both on land and across the sea#(able 1*#. shows the miles of railroad com"leted in selectedcountries by 18*0& 180& and 110#

(he !reat e'"ansion of the rail networ% in the late nineteenthcentury& e$en in countries otherwise little affected by theIndustrial Re$olution& such as Russia and India& im"ro$edcommunication immensely#


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In the 18*0s and 18+0s four inno$ations lowered the cost ofsteam "owered ocean trans"ort

the screw "ro"eller&

iron hulls&com"ound en!ine

surface condensers#

Screw "ro"ellers translated "ower into motion throu!h thewater more effecti$ely#

Iron-hulled shi"s were 203.0 "ercent li!hter and offered 1*"ercent more car!o ca"acity for a !i$en amount of steam"ower#

4om"ound en!ines con$erted coal into mechanical "ower

more efficiently# Surface condensers conser$ed water#

5ast two inno$ations !reatly reduced the coal consum"tion ofen!ines "er horse"ower-hour


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/inally the com"letion of the Sue) 4anal in 18+ and thePanama 4anal in 11. !reatly reduced distances on some ofthe ma,or ocean routes#

(he result of these technolo!ical chan!es was a si!nificant

decline in real ocean trans"ort costs by 100#

By the late nineteenth century industrial locations with !oodwater access that were on well-established shi""in! routesBombay& 4alcutta& adras& Shan!hai& 6on! 7on! could !ain

access to all the industrial in"uts of Britain at costs not toomuch hi!her than those of many firms in Britain#


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(he last of the !reat technolo!ical chan!es of the nineteenthcentury was the introduction of the mechani)ed factory#

Industrial "roduction before the Industrial Re$olution was!enerally directed by many s%illed artisans who learned theircrafts throu!h "ersonal a""renticeshi"s#

(he te'tile industry durin! the Industrial Re$olution wasre$olutionary in its rate of "roducti$ity ad$ance# But it wasalso re$olutionary in its ability to em"loy& with minimal s%illedsu"er$ision& lar!e numbers of uns%illed& untrained& short-term wor%ers#

(he ability of the te'tile industry to %ee" o"erator s%ills&education& and su"er$ision reuirements to a minimum iswell illustrated by rin! s"innin!#


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(his was a s"innin! techniue& de$elo"ed in the nineteenth

century& which succeeded in "art because it minimi)ednecessary wor%er s%ills#

Rin! s"innin! o"erators needed to "erform only the followin!fi$e tas%s

Piecin!#

4ree lin!#4leanin!#

9offin!#

Patrollin!#

Wor% or!ani)ation was e'tremely sim"le# ach s"inner

: "iecer in India; was assi!ned a set of s"indles#


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In the early nineteenth century the heroic a!e of inno$ationby the lone in$entor ended& and a s"eciali)ed machine-

buildin! sector de$elo"ed within the 5ancashire cottonindustry#

Similar ca"ital !oods e'"orters de$elo"ed in the railwaysector& and later in the


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(he British m"ire was the lar!est& co$erin! million suaremiles#

(he /rench had nearly * million suare miles#

=etherlands& > million suare miles? and Germany& 1 millionsuare miles#

9es"ite its many un"leasant as"ects& im"erialism wouldseem to ha$e been a "otent dri$in! force for worldindustriali)ation#

/orei!n entre"reneurs in$estin! in inde"endent countriesalways faced the dan!er of e'"ro"riation if local "olitical

conditions chan!ed#


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(he most im"ortant colonial em"ire was that of the British&whose ma,or "ossessions by the end of the nineteenthcentury included most of India& Pa%istan& Burma& Sri 5an%a&South Africa& and !y"t#

(he nature of British im"erialism also ensured that& u" until118& no country was restrained from the de$elo"ment ofindustry by the absence of a local mar%et of sufficient si)e#

In cotton te'tiles& the ma,or manufacturin! industry of the

world before 118& table 1*#@ shows the ma,or net e'"ortersand im"orters of cotton yarn and cloth in the internationalmar%et of 110#


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India& the lar!est mar%et& was ser$ed almost e'clusi$ely by

n!lish mills& but was in fact o"en to all countries& the onlybarrier bein! a 2#* "ercent re$enue tariff on im"orts#

(he 4hinese mar%et& the ne't lar!est& by fiat of the im"erial"owers was similarly "rotected by only a * "ercent ad$alorem re$enue tariff#

Australia also maintained an ad $alorem tariff of only *"ercent& ha$in! no domestic industry to "rotect#

(hus in 110 the total si)e of the o"en cotton te'tile mar%etwas on the order of .00 million& a uarter of world"roduction#

(his mar%et would be enou!h to sustain 2* million s"indlesand .00&000 looms


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World Growth since 1800 n!land and the other uro"ean countries on the "ath to

ra"id !rowth& much of the rest of the world lan!uished in

"o$erty# In India& after more than a hundred years of British rule&

there were still fifty million hand s"indles and two millionhand looms in the 1>0s#

(he di$er!ence of national incomes and li$in! standards that

be!an with the Industrial Re$olution continues to widen tothe "resent day#


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(he !a" between material li$in! standards in the richest and"oorest economies of the world is now more than *01& whilein 1800 it was "robably at most .1#

aterial li$in! standards ha$e increased only tenfold insuccessful economies such as n!land and the 000# (hedi$er!ence in fortunes since 1800 is $ery clear#


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(he most notable success has been the > "ercent#

Within uro"e the countries of northwestern uro"eBel!ium& 9enmar%& /rance& Germany& the =etherlands&=orway& Sweden& and Swit)erland all beha$ed as

e'"ected and maintained a "er ca"ita income relati$e toBritain similar to the le$els of 1800#


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All of southern and eastern uro"e remained "oor& withincomes "er "erson at only .03+0 "ercent of British le$els#

By 112 these countries also remained lar!ely de$oted to"easant a!riculture& ,ust as they had been in the ei!hteenthcentury#

any other countries ha$e witnessed a declinin! relati$eincome le$el as the result of the brea%down of "olitical andsocial institutions#

(hus many of the countries of Africa& which are now amon!the worldCs "oorest& ha$e suffered from ethnic strife and the

colla"se of "olitical institutions since their inde"endence#


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4onclusion (here is now almost instant communication between differentcountries of the world? a $i!orous e'chan!e of foods& styles&and music and an e$er risin! flow of !oods internationally#

But the di$er!ence of incomes ensures that the "oor

countries of the world remain as e'otic to the rich as theywere in the se$enteenth or ei!hteenth century#

$en in as relati$ely "ros"erous "art of the underde$elo"edworld as India& wor%ers new to cities sometimes still slee" onthe streets#

In contrast& in the richest ma,or country in the world& thea$era!e American in >001 li$ed in a dwellin! with @*0 suarefeet "er "erson& and e$en the "oorest fifth of the "o"ulationen,oyed *+0 suare feet "er "erson#


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