west ldc

The Western ExperienceRosenberg and Birdzell: How the West Grew Rich: 

The Western Experience Rosenberg and Birdzell: How the West Grew Rich 14th C. Feudal Society Few markets. Prices set by custom and tradition ('just' prices and 'just' wages). Rigid social and political structures Nobility bound to crown, serfs to nobility Payments in kind Seizures v. taxation Less specialization Modest population growth rates, dominated by variable death rates

Slide2: 

Feudal Society, Continued Scientific knowledge not widely held or applied Relatively centralized authority Low rates of innovation, partly due to centralization Limited inter-regional trade Largely Agrarian (85% Manors, 15% Towns) From Medieval to Modern Fourteenth C.: Wars, Plagues, Poverty Shipbuilding advances improved trade

Slide3: 

Medieval to Market, Continued Professional armies upset the balance of power urbanization relied on exchange, a counterpart to specialization Merchant class emerged Tenancy farming evolved Population growth accelerated By 18th C., trade had improved Western standards of living immeasurably relative to other nations and had been associated with many institutional innovations which would lead to modern economic life.

Historical West v. Today’s LDC’s: 

Historical West v. Today’s LDC’s Colonialism England had colonies; many African nations were colonies Nature of colonial rule depended on the circumstances; India v. Africa Timing of independence: Latin America, Asia, Africa Technology transfers Caveat: False Paradigm Model

Colonialism: 

Colonialism England HAD colonies, African nations WERE colonies Nature of colonial rule depended on circumstances and affected the quality of post-colonial as well as post-colonial policies Example: Access to education in India and Africa

Colonialism, Continued: 

Colonialism, Continued Timing of independence: Latin America, Asia, Africa (African nations colonized until '60s, '70s, and 80's! Some technology can be transferred from MDCs Countries are able to import technologies (ways of doing things) from the MDCs, which sometimes hastens development. Caveat: false paradigm model Peru Africa and the Green Revolution

Capital and Paths to Development: 

Capital and Paths to Development West: Concentrations of wealth facilitated certain investments which helped spur growth (shipping, factory building, etc.) While investment is required for growth, SUBSTITUTES (Gerschenkron) for amassing capital existed--financial institutions in Germany, foreign investment in many LDCs today. Capital formation not sufficient for growth Argentina illustrated that other ingredients, such as political stability, which may be tied to income distribution, were requried. Mexico's revolution in 1990s

References: 

References Birdzell et al. Gillis, et al. Todaro