Foundations of the European miracle Flashcards
(23 cards)
What is the ‘European Miracle’?
The view that Europe overtook Asia vs Asia falling behind.
According to Broadberry (2015), what is not true about pre-industrial economies over two centuries ago?
The received wisdom that they were stagnant.
What are the key features of the European Miracle?
- State involvement – effective decentralised state
- Private-order institutions – independent legal system, independent religious system, independent merchant class
- Late medieval commercial revolution – increased trade and finance
- Late medieval agricultural revolution – structural change
Who were the key players in the European Miracle?
- Italian City States
- Portugal
- Holland/England
- Britain
Which Italian city-states were known for their urbanization and trade?
- Venice
- Genoa
- Florence
What was Venice’s role after the fall of the Roman Empire?
Re-opened European trade.
What led to the Genoese naval victory in 1291?
Victory over Morocco opened up the straits of Gibraltar.
What trade-related industries were key economic sectors in the Italian city-states?
- Shipbuilding
- Timber trades
- Carpentry
- Rope
What payment system emerged in the 13th century in Italy?
Gold florins and ducats.
What banking innovations emerged in the 12th century in Italy?
- Deposit banks
- Overdrafts
- Marine insurance
What were key factors of Italian success?
- Good policy/state involvement
- Good institutions
- Improved organization of agriculture
- Political and legal institutions to guarantee property rights
Who was Prince Henry and what was his contribution?
Devoted to exploring Africa and established a center of navigators.
What were the ‘Great Discoveries’ associated with Portugal?
- Cape of Good Hope
- India
- Canton
- Japan
How many slaves were shipped by Portugal to the Americas from 1500-1870?
4.5 million slaves.
What agricultural innovations did Britain experience?
- Enclosure
- New crop rotations
- Selective breeding
- Root crops
What characterized Britain’s trade empire?
Supplied access to raw materials and allowed exports of manufactured goods.
What are the phases of European growth?
- Phase 1: Mediterranean responds to the Black Death
- Phase 2: NW Europe responds to Great Discoveries
- Phase 3: Modern economic growth
What did the Genoese traders require for their operations?
Formal procedures and a system of contract enforcement.
What led to the ‘turn inwards’ of China in the 15th century?
Internal conflicts and negative views on merchant activities.
What was the significance of Atlantic trade for NW Europe?
Sparked urbanization, higher per capita incomes, and significance of trade.
What are the six characteristics of Modern Economic Growth according to Kuznets?
- Sustained rates of growth of population and GDP per capita
- Significant evidence of structural change
- Urbanization and secularization
- Rapid transport and communications
- Wide gap between rich and poor countries
- High and sustained growth of efficiency
What alternative definition of modern growth was proposed by Dr Vries and Van der Woude?
- Market integration
- Agricultural productivity
- Governance (state capacity)
- Technological change (innovation)
What was the role of good institutions in Europe’s long-run growth?
Europe had good institutions that capitalized on opportunities for trade and commerce.
