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The Great Divergence Debate
The Great Divergence Debate
The question why parts of Europe surged ahead economically from the eighteenth
century while much of Asia, Africa, and even the Americas (with the exception of the
United States), lagged behind has been debated for more than a century. Great thinkers
of the nineteenth and twentieth centuries, ranging from Karl Marx to Max Weber, have
addressed this large and important issue, as have a number of leading historians in
our own times, including Eric Jones, Douglass North, and David Landes. The ‘Great
Divergence’ as it has come to be known is, therefore, a very old question, but the contours
of the present debate were shaped by the publication of Kenneth Pomeranz’s book of that
title in 2000. While Pomeranz’s book focused on China – and more precisely on the
Yangzi Delta – it ranged into Japan, India, and Southeast Asia, but the entry of India
into the debate more fully would await the publication of Prasannan Parthasarathi’s Why
Europe Grew Rich and Asia Did Not in 2011.
The predilections of the two authors and the different perspectives that China and
India bring to the problem have meant that the explanations for divergence differ in the
two books. While Pomeranz has a far greater environmental history focus, Parthasarathi
devotes more time to questions of technology and the state. Nevertheless, both works
devote considerable attention to the economic conditions and institutions in the run-up
to divergence. All of the above have been subject to great debate.
In the last fifteen years one can distinguish several overlapping strands of contention
and not surprisingly the debate has focused far more on China than on India. In part,
this is due to the earlier publication of the Pomeranz work and the long dominance
of China–Europe comparisons. Such a debate is also not surprising given the greater
number of historians of China than India in the United States and Europe, which has
kept the discussion alive and thriving. There has also been more interest in the question
of divergence in China and Japan than in India. While economic history is currently a
flourishing field in East Asia, in South Asia it has gone into sharp decline since its heyday
in the 1960s and 1970s.
This chapter will focus on comparisons between the advanced regions of Europe,
China, and India, which have been the areas upon which much of the literature on
the question has concentrated. It takes up four sets of issues. The first has to do with
methodological questions connected to how we explain divergence. The chapter
contrasts the structural approach that characterized an older and conventional approach
to the problem with a conjunctural approach that has been introduced in the writings of
Pomeranz and Parthasarathi. The structural approach rests upon enduring differences
between Europe and Asia, which have been challenged in recent writings. Several
The classic writings of Karl Marx and Max Weber argued that the exceptional path of
European economic development emerged from exceptional European conditions.
Europe, in other words, was fundamentally different in some way from the advanced
regions of China and India, and it was this difference that gave Europeans an economic
edge and put the continent on a different trajectory. Such explanations are often called
‘structural’ in that they argue for deep social, political, economic, or cultural differences.
For Marx this difference was capitalism. Europe gave rise to a new economic order
which rested on private property and wage labour, which was dynamic, innovative,
and ever changing. Capitalism began in the countryside, where it transformed the
agrarian order, but it soon spread to the world of manufacturing and its restlessness
and dynamism produced the Industrial Revolution in the eighteenth century. However,
capitalism as a new mode of production had longer origins, which means that the
process of divergence began long before the eighteenth century, a point that the chapter
will return to. By contrast, China and India remained static and unchanging, trapped
in an Asiatic mode of production. As Marx wrote of India: ‘Indian society has no
history at all, at least no known history. What we call its history, is but the history of
successive intruders who founded their empires on the passive basis of that unresisting
and unchanging society.’1
While Max Weber took a more cultural tack to understanding capitalism, he
shared with Marx an approach which emphasized deep-seated differences between
Europe, in particular its Protestant areas, and China and India. For Weber, the critical
development in Europe was the affinity between the tenets of Protestantism and a
20
21
China
One of Pomeranz’s key claims, and confirmed by others, is the strength of the agricultural
order in the Lower Yangzi. Robert Allen’s reconstructions suggest that, as late as 1820,
productivity per labour day in Yangzi Delta farming was 90 per cent of England’s and
that annual net income for a Delta tenant family (including a wife who made cloth part
22
time, as was quite common) was slightly higher than for a similar English household.
Another study puts labour productivity in Yangzi Delta farming c. 1800 as equivalent to
that of Holland, which was 94 per cent of English levels.6 Meanwhile, land productivity
was far higher in the Delta than anywhere in the world except parts of Japan and was
roughly nine times that of England. Thus, the Delta’s total factor productivity was
also extremely high and much higher than in various European countries which did
industrialize in the nineteenth century. Agricultural labour productivity in Germany,
for instance, was about 50 per cent of English levels, and its land productivity was also
lower.7 These and other points challenge ‘agrarian fundamentalism,’ which argues that
readiness for industrialization must be a direct function of agricultural efficiency as this
makes it possible to free labour and capital for other uses and keeps food prices, and
thus wages, low.8 Agrarian fundamentalism has also been challenged from the Indian
perspective, which we will turn to shortly.
A different version of agrarian fundamentalism had also long held sway in
Chinese historiography. The Great Divergence has generally been well received in
China, but there have also been criticisms, many of which have come from scholars
convinced that peasant production (as opposed to large farms largely worked by
wage labour) cannot have yielded either the surpluses above subsistence or the
flexibility necessary to begin sustained per capita growth. This position had long
been a given of mainland Chinese historiography, but it cannot be reconciled with
labour and total factor productivity figures like those cited earlier, or the impressive
twentieth-century economic performances of Japan, Taiwan, and, more recently,
Eastern China – all places featuring small-scale farming by families with strong
ownership or usufruct rights.
The Great Divergence’s larger claim that living standards and per capita incomes were
comparable between Europe and China, and between England and the Yangzi Delta has
required some revision. Originally, Pomeranz suggested that this was probably still true
in 1800, and almost certainly around 1750. The 1750 claim remains plausible, though
disputed; the former less so. A recent paper by Stephen Broadberry, Hanhui Guan, and
David Daokui Li suggests a divergence in per capita GDP at a date closer to 1700 than
1750. However, this may be a sign that the range of disagreement is narrowing, since
Guan and Li had previously claimed that a huge gap already existed in the fifteenth
century.9 Still more recently, Patrick O’Brien and Kent Deng have questioned the
feasibility of any GDP or wage comparisons and argued for a focus on consumption,
beginning with grain; even here, numbers vary, but they suggest comparability between
the Lower Yangzi and England at least as of 1750, and maybe beyond.10
India
The debate on standards of living in India is more spatially scattered and at an earlier stage
than that on China, for which there are more contributions and which are centred regionally
on the Yangzi. The debate may be said to have been launched in 1998 with the publication
of Parthasarathi’s ‘Rethinking wages and competitiveness,’ which has been challenged by
23
several economic historians but most forcefully in several writings by Broadberry and
Gupta.11
Broadberry and Gupta have recently summarized their position: Silver wages were
substantially lower in India than in England in the seventeenth and eighteenth centuries,
which is a point that Parthasarathi made in 1998 and which he argued was the reason
for the competitiveness of Indian cotton cloth exports. While Parthasarathi argued that
grain wages (a rough measure of the real wage) were comparable in the mid-eighteenth
century, Broadberry and Gupta conclude that while they were roughly comparable in
the seventeenth century – the Indian figure ranged between 80 and 95 per cent of the
English – in the eighteenth century there was a sharp decline and the Indian grain wage
was only 33 to 40 per cent of the English.12
Broadberry and Gupta’s findings for the eighteenth century have been disputed by
not only Parthasarathi but also Sashi Sivramkrishna. The latter has drawn upon the
voluminous material contained in Francis Buchanan’s account of a journey through
South India, mainly Mysore, in the early nineteenth century and has showed a
rough comparability of real wages based on a broader basket of consumption goods.
Parthasarathi has questioned Broadberry and Gupta’s conclusions as they exclude well-
known estimates for earnings of outcaste labourers in agriculture, which would have
represented a wage floor in South India, and derive earnings for skilled weavers that fall
in the same range as those of these degraded labourers.13
There are other problems with the Broadberry and Gupta figures: There is no
allowance for non-monetary perquisites, which Parthasarathi included in his original
calculations; we have no information on how many days per week labourers worked
in England and India and the extent of unemployment and underemployment
(impressionistic evidence suggests that these labour market conditions favoured
workers in India, where there were widespread labour shortages before the nineteenth
century). Finally, Broadberry and Gupta do not provide any explanation for their
findings, especially given what we know about structures of contracts and the
bargaining power of labourers in the two places, which again favoured labourers in
India.
Obviously the jury is still out on the question of the comparability of wages and
standards of living in India and Europe. However, it is unlikely that quantitative evidence
alone will be sufficient to resolve this issue, and broader conditions of work and the
position of labourers in the political and economic orders must also be considered. In
his original contribution, Parthasarathi brought a broad perspective to the problem, but
his critics have tended to be narrowly quantitative. To continue this discussion requires
a deep immersion in regional economies and deep familiarity with local conditions and
prices. Broadberry and Gupta range widely over the Indian subcontinent as a whole and
mix together prices from diverse areas, which can be seen in their most recent summing
up of the debate. Finally, the low-estimate earnings that Broadberry and Gupta provide
for the eighteenth century raise the question of how labourers survived in that period.
We know from other sources such as anthropometric data that South Indian workers,
for instance, shrank in size over the course of the nineteenth century. The second half of
24
the nineteenth century was also an extraordinary period of famine in several regions of
India. Why did these things not happen in the eighteenth century?14
Discussion
Even if we accept the most pessimistic estimates, which suggest that rough parity in
standards of living had vanished by 1750 (in the case of China) or as early as 1700 (for
India), this represents a major revision of previously dominant views. Angus Maddison’s
widely cited per capita GNP estimates, for instance, suggested that both China and
India fell behind Europe centuries earlier,15 and many other scholars claimed that a
fundamental divergence had occurred by 1500, year 1000, or even earlier.16 Fixing a
precise date is probably not crucial or even possible. Nevertheless, some rough dating is
needed because that will determine the universe of plausible explanations for divergence.
For, if there were rough parity between the advanced regions of Eurasia in 1700, then
some traditional favourite explanations would be eliminated. For instance, if the cause of
divergence were, as David Landes claims, a difference between freedom and despotism
that went back to ancient Greece, and gave Europeans a much greater propensity to
innovate, it would be very hard to explain why East and South Asia remained so close to
Europe more than 2,000 years after Pericles.17
Even if economic divergence came later than we once thought, a significant gap
appears to have emerged by 1800 between the advanced regions of Europe and China,
and perhaps between those of Europe and India as well. Certainly, the gap grew rapidly
thereafter. This was largely because non-agricultural workers were generally much
more productive than farmers in Europe and England than in China and Japan, and
the number of non-farmers was growing at both ends of Eurasia.18 Again, this suggests
that explanations are best sought outside agriculture, and without relying on black-and-
white contrasts between entire societies. This still leaves us far from consensus, but it
narrows the range of possibilities considerably.
Divergence seems to have come earlier to unskilled wages, both urban and rural, than
to living standards. Though the data are poor, especially on the Chinese side, they indicate
that by the mid-eighteenth century – when other indicators still suggest close comparability
between Jiangnan and advanced regions of Europe – Delta wages had already fallen far
behind, resembling those of Milan or even Warsaw more than those of London.19
At first these two points seem irreconcilable; but a gap in real wages can be quite
consistent with comparable living standards. Wage labourers were probably under 10 per
cent of rural adults even in the highly commercialized Lower Yangzi, where one might
expect widespread landlessness. By contrast, nearly half of the working population in
England and Holland in c. 1700 probably relied on wage earning.20 Because most tenants
in the Delta had strong usufruct rights, they earned much more than unskilled labourers
– roughly three times as much, according to the best estimates Pomeranz can put
together (smallholders would have netted almost five times what a labourer earned).21
Thus, a comparison of unskilled real wages is a comparison of the bottom of the income
25
scale in Jiangnan with something close to the middle in Northwest Europe, reconciling
significant wage differences with comparable average living standards.
Since politics as well as markets structured global trade flows, institutions are also of
importance. And institutions, of course, also figure in other explanations of East–West
divergence. Indeed, the variety of institutional differences that have been invoked by
one scholar or another can seem endless: domestic political arrangements; property
rights; contract enforcement; fiscal and financial systems; institutions for encouraging,
suppressing, and/or protecting inventions; organizations for trading and building
empires overseas; and so on. These debates have been a good deal broader than those
about the extent and timing of divergence, and participants have often talked past each
other – not only because they have been working on many different subtopics, but
also because it has not always been clear how to move from describing differences to
assessing their significance. We here highlight a few points that have become relatively
well accepted.
Although East Asian property rights and contract enforcement differed from
those taking shape in Northwest Europe, Pomeranz argues that they were adequate
for the efficient product markets that Smithian growth requires (i.e. growth based on
the expansion of the market and the extension of the division of labour).22 When it
comes to factor markets, the previous discussion of agriculture makes it hard to deny
the effectiveness of Chinese (and Japanese) systems for allocating access to land. The
evidence on capital markets is more mixed. It appears that capital in Japan and China was
more expensive than in Europe, but the higher costs did not inhibit typical eighteenth-
century kinds of economic activity such as handicraft production, commerce (including
long-distance trade), agricultural improvement, or even early factories. East Asian
manufacturing techniques tended to be less capital intensive than those in Europe, but
not necessarily less efficient.23
The biggest differences related to capital markets were in the area of public finance.
European states clearly had much more effective systems for raising immediately available
funds by pledging future revenues. However, it is not clear that this mattered much to the
overall economic growth in early modern times, due to three crucial conditions:
a) The overwhelming majority of European government spending was for warfare,
and so was not very constructive in the short run, although long-run linkages
were important).
b) China, and especially Japan, faced much lower and more episodic military costs;
these could generally be met by temporary exactions which were not large or
frequent enough to discourage wealth accumulation.
c) The technologies available did not require either very large-scale fixed investment
that took many years to fully repay initial costs (as, for instance, railroads would
26
One of the most contentious areas in the divergence debate continues to be the
contribution of science. Three positions may be identified in the literature. The first argues
that science was not relevant, at least in the early stages of industrialization, and that it
was artisanal knowledge that was important. Allen and Pomeranz are representative of
this perspective.24 The second argues that by the eighteenth century – if not even earlier
– European science was critical and that what Europeans brought to the enterprise of
production was in global terms a unique approach to knowledge and its application.
Margaret Jacob, Joel Mokyr, and Patrick O’Brien may be seen as exemplars of this
position.25 A final position may be seen as a hybrid of the two aforementioned positions
and is articulated by Parthasarathi. On the one hand, it argues that the application of
knowledge to production was found outside Europe, in this case early modern India;
that in important respects early modern science must be seen as transcending national
or continental frames and emerged from contact; and finally, this approach agrees with
Allen that in the early stages of industrialization artisanal knowledge was more important
than scientific and that the creation of knowledge of the natural world often followed
technical breakthroughs.26
The role European science and knowledge systems played in divergence will continue
to be debated for some time. However, it is striking that economic historians address these
issues in radically different ways compared with historians of science. First, historians
of science have moved away from an old emphasis on the laboratory or bench top as the
main site of scientific activity to include field sciences such as botany, in which there
was widespread cooperation across the world. With this shift in approach, historians
of science have uncovered the contributions that scientific-minded individuals outside
Europe made to the development of modern science. The label ‘global science’ would be
a more accurate descriptions of for many things that have been labelled as ‘European
27
science’. Second, historians of science have found it very difficult to connect scientific
knowledge and technological change at the micro level and therefore have moved
away from making blanket statements about the connection between the two. There
are many instances well into the nineteenth century of major technological advances
emerging in the workshop, of which the science that lay behind the new technology
was understood only afterwards. The steam engine is the quintessential example. The
scientific principles, what we know as thermodynamics, were fully worked out long after
the steam engine had been put to work for many decades. Finally, the growing evidence
of scientific interest in seventeenth- and eighteenth-century South Asia and political and
economic interest in knowledge production for its usefulness mean that arguments for
the exceptional nature of European science have to be rethought. In sum, the differing
approaches of economic historians and historians of science will need to be reconciled if
the debate is to advance.27
Both The Great Divergence and Why Europe Grew Rich and Asia Did Not drew upon
generations of scholarship on the British Industrial Revolution and the industrialization
of Europe more broadly. The Industrial Revolution is one of the most intensely debated
events in the discipline of history. Its only rival may be the French Revolution, the other
event which along with the Industrial Revolution gave rise to the modern world in Eric
Hobsbawm’s famous and enduring formulation of dual revolutions.28
The Great Divergence builds upon classic writings on coal and British
industrialization. The energy approach may be traced back to the nineteenth century
with works such as the Coal Question by William Stanley Jevons. In the 1930s, John
Nef published a major two-volume study of the rise of the British coal industry. The
most important recent exponent of the energy approach is Tony Wrigley, who, in
1988, brought coal back to the centre of the story of Britain’s exceptional path of
economic development. Pomeranz also draws upon the work of Eric Jones, who
introduced the concept of ‘ghost acres’ in his classic study of divergence, The European
Miracle, and in a more indirect way on Eric Williams’ study of Caribbean slavery and
English growth.
Why Europe Grew Rich and Asia Did Not picks up on other significant strands of
writing on the British Industrial Revolution. The book’s focus on cotton has a long lineage
and may be traced back to nineteenth-century works such as Edward Baines’ History of
the Cotton Manufacture in Great Britain. In the twentieth century, cotton was central
to numerous classic accounts – from that of Paul Mantoux’s The Industrial Revolution
in the Eighteenth Century to David Landes’ Unbound Prometheus and Eric Hobsbawm’s
Industry and Empire. It was Hobsbawm who declared that ‘whoever says industrial
revolution says cotton’.29 Why Europe Grew Rich and Asia Did Not’s periodization of
British industrialization into stages, cotton followed by coal, is faithful to that offered by
John Clapham.
28
As the overview of the debate on divergence has indicated, the lines of debate
and disagreement are many. These revolve around the relative ‘levels’ of economic
development in the advanced areas of Europe and Asia, the nature of the industrialization
process, the contribution of institutions, and the contribution of science and knowledge
to that process. How are we to judge between competing explanations and settle upon
which one is right or true?
In the case of several of these issues, adjudicating between different positions
rests on the interpretation of qualitative data.30 The contribution of institutions to the
process of economic development or the level of scientific knowledge is not amenable
to quantification; thus, to some extent, the judgement of these factors is subjective and
‘in the eye of the beholder’. The interpretation of these sorts of factors is made more
difficult by the lack of research on them in the Asian context, and thus places limits
on our historical knowledge. The historical scholarship is far thinner on science in the
seventeenth and eighteenth centuries for India than for Europe, for example.
A focus on factors that can be quantified is not a solution to this dilemma. If only
such factors, such as wages, incomes, and prices, are part of the analysis, important
dimensions of social, cultural, economic, and political life, which play a significant role
in economic development, could be excluded. Quantification does not eliminate the
interpretive and subjective elements that are present in the case of qualitative evidence.
Making sense of quantitative evidence is no less ‘in the eye of the beholder’.
The creation of quantitative data rests upon hundreds, if not thousands, of judgements,
each of which can introduce error into the final figures. This is the case today when
economists construct national income and other figures of economic performance.
However, these difficulties are compounded when dealing with historical data and are
made worse the further back we go. Eric Hobsbawm, who was not averse to quantification
but recognized the difficulties, put it well more than fifty years ago when he pointed to
the complexities of calculating money wages for even British workers in the nineteenth
century: ‘We know next to nothing of what people actually earned. How much overtime
or short time did they work? How often were they unemployed and for how long? Who
knows?’31 Converting these money wages into real wages introduces further pitfalls and
is no easy task even in contemporary times. Hobsbawm writes: ‘We know from modern
experience how full of pitfalls cost-of-living indices can be even in our own time, when
considerable efforts are made to collect statistics specially for their compilation.’32
Kent Deng and Patrick O’Brien have pointed to a number of these same issues in a
critical review of the wage and price data that are available for China. They urge scholars
to ‘remain sceptical towards all published comparisons of wage levels and trends for the
Chinese and by extension other Asian empires’.33 While their careful analysis focuses on
the sources for a quantitative economic history of China, they conclude that the same
limitations apply to those for India and the Middle East.
Even if we were able to assemble quantitative information that was able to accurately
represent economic reality, that data would still have to be interpreted, which is neither
simple nor straightforward. Stephen Marglin, in his classic comparison of economic
paradigms, writes that it is difficult to conclude on the basis of empirical tests whether
29
30
31
from the ‘sprouts of capitalism’ literature with a strong emphasis on the negative
consequences of late imperial population growth. Probably the most notable has been
the Chinese–American historian Philip Huang (Huang Zongzhi); while based for many
years at the University of California, Los Angeles (UCLA), Huang has also been active in
scholarly circles in China. Huang reaffirmed the argument of his UCLA colleague Robert
Brenner that only capitalist farms based on wage labour (and ruthlessly minimizing costs
by driving ‘excess’ workers off the land) could generate rising labour productivity, capital
accumulation, and sustained growth. Much of Brenner’s work has been devoted to
insisting that these essential dynamics emerged only in England, and to explaining why.42
In an influential 1990 book, Huang took China, including the Yangzi Delta, to
represent an even more extreme case of the qualitative stagnation that Brenner attributes
to continental Europe. As he sees it, most Chinese peasants held on to their land (much
like in France, but unlike in Britain). As population grew and plot sizes shrank, they
had to maximize per acre yields; this is what enabled them to pay such high rents that
landlords had no incentive to replace them with wage labourers. These high yields were
achieved by working extraordinary numbers of labour days per acre, and by putting even
more days into labour-intensive handicrafts; this labour intensification continued even
at the cost of reducing peasants’ earnings per labour day to extraordinarily low levels.
Households working this hard could sustain large families, but only at bare subsistence
levels, and at the cost of further increasing pressure on the land in the next generation.
This locked in a process of numerical growth that was the antithesis of true development,
and which Huang calls ‘involution’.43
This is not the place to rehearse all the details of the debate that followed.44 Suffice it to
say that Pomeranz’s views have largely prevailed, in part because the debate uncovered a
basic error in Huang’s work: In estimating the earnings per labour day for Yangzi Delta
weavers, he misplaced a decimal point, throwing his calculations of gross earnings off by
a factor of 10 (and of net earnings by even more).
Unsurprisingly, it is the sections of The Great Divergence that deal with China (as
opposed to Europe or other places) that have excited the most interest in China. Most
of that discussion has treated the book as part of a larger ‘California school’ which has
become the topic of a number of articles. The members of this ‘California school’ vary
with the person defining it – which is hardly surprising since it has never had a firm
institutional identity or a complete consensus on the issues – but R. Bin Wong, James Lee
and his collaborators, Li Bozhong, Robert Marks, Richard Von Glahn, Jack Goldstone,
and Pomeranz are usually included.
Chinese responses to this ‘school’ have naturally been varied, but it is fair to say that
it has stimulated increased interest in comparative history within China. Moreover, this
has been comparative history which, unlike the ‘sprouts’ and ‘involution’ literatures, goes
beyond comparing China to a ‘typical’ (i.e. stylized European capitalist) path. In fact, one
common feature of ‘California school’ comparisons has been an insistence that neither
society should be treated as defining a norm from which the other society is a deviation.45
It has helped stimulate new approaches to the Qing era, in which the state is (for better
or worse) a less overwhelming presence, and the motors of social change are to be found
32
elsewhere in society. Increased interest has been paid to long-run, slowly developing
trends in Chinese society – perhaps going all the way back to the Song dynasty – that
continue up into the twentieth century. Such a view, quite forcefully expressed in a
conference volume called The Song-Yuan-Ming Transition,46 seems to be replacing older
stories in which ‘revolutionary’ changes in Song and late Ming were followed by equally
sharp reversals, frustrating what both Marxism and Western modernization theory
thought ‘should’ have happened next, and defining Chinese history in terms of those
alleged blockages.
Conclusion
As this chapter has shown, the debate on divergence is remarkably broad, touching upon
not only prices and incomes, the traditional bread and butter of economic historians, but
also ranging far and wide to include science, rationality, the environment, politics, and
the state. While the debate has raised difficult empirical questions, it has also brought
to the fore equally challenging problems of method. Its sheer scope and complexity
make the question an enduring one not only for historians but also for a range of social
scientists from sociologists to economists and political scientists. It will continue to
remain a central problem for decades to come.
Notes
1. K. Marx (1978 [1853]), ‘The future results of British Rule in India’, in R. C. Tucker (ed.), The
Marx-Engels Reader. New York: Norton, 659.
2. M. Weber (1930), The Protestant Ethic and the Spirit of Capitalism, trans. Talcott Parsons.
New York: Scribner; M. Weber (1951), The Religion of China, trans. H. H. Gerth. New York:
Free Press; M. Weber (1958), The Religion of India, trans. H. H. Gerth and D. Martindale.
New York: Free Press.
3. North and Thomas, The Rise of the Western World; E. L. Jones (1981), The European Miracle:
Environments, Economies, and Geopolitics in the History of Europe and Asia. Cambridge:
Cambridge University Press; D. Landes (1998), The Wealth and Poverty of Nations. New
York: W.W. Norton; Mokyr, The Gifts of Athena.
4. Pomeranz, The Great Divergence; Parthasarathi, Why Europe Grew Rich and Asia Did Not.
5. E. A. Wrigley (1988), Continuity, Chance and Change: The Character of the Industrial
Revolution in England. Cambridge: Cambridge University Press; A. P. Wadsworth and J. de
Lacy Mann (1931), The Cotton Trade and Industrial Lancashire. Manchester: Manchester
University Press.
6. B. Li and J. L. Van Zanden (2012), ‘Before the Great Divergence? Comparing the Yangzi
Delta and the Netherlands at the beginning of the nineteenth century’, Journal of Economic
History, 72 (4), 956–89.
7. R. C. Allen (2000), ‘Economic structure and agricultural productivity in Europe, 1300–1800’,
European Review of Economic History, 4 (1), 20.
33
8. See for instance R. Brenner (1985), ‘Agrarian class structure and economic development’,
and ‘The agrarian roots of European capitalism’, in T. H. Aston and C. H. Philpin (eds), The
Brenner Debate. Cambridge: Cambridge University Press, 10–63, and 213–327; M. Overton
(1996), Agricultural Revolution in England: The Transformation of the Agrarian Economy
1500–1800. Cambridge: Cambridge University Press. For the term ‘agrarian fundamentalism’
see: R. C. Allen (1992), Enclosure and the Yeoman: The Agricultural Development of the South
Midlands. New York: Oxford University Press, 2–3.
9. S. Broadberry, H. Guan and D. Li (2014), ‘China, Europe, and the Great Divergence: A study
in historical national accounting, 980–1850’, http://eh.net/eha/wp-content/uploads/2014/05/
Broadberry.pdf. Guan and Li had previously argued that China was far behind by the
fifteenth century, if not earlier, and had fallen even further behind over the succeeding
centuries. See H. Guan and D. Li (2010), ‘Mingdai GDP ji jiegou shitan’ [A study of GDP and
its structure in China’s Ming dynasty], Zhongguo jingji jikan, 9 (3), 787–829, http://en.cnki.
com.cn/Article_en/CJFDTotal-JJXU201003003.htm
10. P. O’Brien and K. Deng (2016), ‘Nutritional standards of living in England and the Yangtze
Delta (Jiangnan), circa. 1644 – circa 1820: Clarifying data for reciprocal comparisons’,
Journal of World History, 26 (2), 233–67; P. O’Brien and K. Deng (2017), ‘How well did the
facts travel to support protracted debate on the history of the Great Divergence between
Western Europe and Imperial China?’ February 2017, available at New Economics Papers,
http://econpapers.repec.org/paper/pramprapa/77276.htm; K. Pomeranz (2017), ‘The data we
have vs. the data we want: A comment on the date of the Divergence Debate’, Pt. I and Pt II,
New Economics Papers (8 June 2017) https://nephist.wordpress.com/2017/06/06/the-data-
we-have-vs-the-data-we-need-a-comment-on-the-state-of-the-divergence-debate-part-ii/
(Part 1, immediately below).
11. P. Parthasarathi (1998), ‘Rethinking wages and competitiveness in the eighteenth century:
Britain and South India’, Past & Present, 98, 79–109.
12. S. Broadberry and B. Gupta (2006), ‘The early modern Great Divergence: Wages, prices and
economic development in Europe and Asia, 1500–1800’, Economic History Review, 59 (1),
2–31.
13. S. Sivaramakrishna (2009), ‘Ascertaining living standards in erstwhile Mysore, Southern
India, from Francis Buchanan’s Journey of 1800–01: An empirical contribution to the Great
Divergence debate’, Journal of the Economic and Social History of the Orient, 52 (3), 695–733;
Parthasarathi, Why Europe Grew Rich and Asia Did Not, 37–46.
14. L. Brennan, J. McDonald, and R. Shlomowitz (1994), ‘Trends in the economic well-being of
South Indians under British rule: the anthropometric evidence’, Explorations in Economic
History, 31 (2), 225–60; M. Davis (2002), Late Victorian Holocausts: El Niño Famines and the
Making of the Third World. London: Verso.
15. A. Maddison (2001), The World Economy: A Millennial Perspective. Paris: OECD, 42,
suggesting that Western Europe overtook China in c. 1300.
16. See D. Lal (1998), Unintended Consequences: The Impact of Factor Endowments, Culture,
and Politics on Long-Run Economic Performance. Cambridge, MA: MIT Press; London: Eyre
Methuen; E. Jones (1987), The European Miracle, 2nd edn. Cambridge: Cambridge University
Press; I. Wallerstein (1976), The Modern World-System, Volume I. New York: Academic Press.
17. Landes, The Wealth and Poverty, 33–5, 59, and passim.
18. See Li and Van Zanden, ‘Before the Great Divergence’.
19. R. C. Allen, J. P. Bassino, D. Ma, C. Moll-Murata and J. L. Van Zanden (2011), ‘Wages, prices
and living standards in China 1738–1925: In comparison with Europe, Japan, and India’,
34
Economic History Review, 64 (1), 8–38. This article’s estimates of agricultural wages in China
are, as the authors note, actually very close to Pomeranz’s. R. C. Allen (2009), ‘Agricultural
productivity and rural incomes in England and the Yangzi Delta, ca. 1620–1820’, Economic
History Review, 62 (3), 544, suggests that Lower Yangzi wages were about the same as English
ones in the mid-seventeenth century, and Delta peasants were far more prosperous than
English farm labourers at that time. Ibid., 546. And see R. C. Allen (2004), ‘Mr. Lockyer
meets the index number problem: The standard of living in Canton and London in 1704’,
available at http://www.iisg.nl/hpw/papers/allen.pdf, for a different (smaller) dataset,
suggesting comparable wages in Canton and London in 1704.
20. C. Tilly (1984), ‘Demographic origins of the European proletariat’, in D. Levine (ed.),
Proletarianization and Family History. Orlando: Academic Press, 1–85 uses a looser
definition, and gets even higher figures: see esp. 36.
21. Calculations in K. Pomeranz (2006), ‘Standards of living in rural and urban China:
Preliminary estimates for the mid-eighteenth and early twentieth centuries’. Paper for Panel
77, World Economic History Congress, Helsinki.
22. On market integration in China and Europe, see W. Keller and C. Shiue (2007), ‘Markets in
China and Europe on the eve of the Industrial Revolution’, American Economic Review, 97
(4), 1189–216.
23. See esp. Rosenthal and Wong, Before and Beyond Divergence. See also Pomeranz, The Great
Divergence, 180–2, on why interest rates per se may not be the best indicators of whether
credit markets were obstructing development.
24. R. C. Allen (2009), The British Industrial Revolution in Global Perspective. Cambridge:
Cambridge University Press; Pomeranz, Great Divergence.
25. M. Jacob (2014), The First Knowledge Economy: Human Capital and the European Economy,
1750–1850. Cambridge: Cambridge University Press; Mokyr, Gifts of Athena; and O’Brien’s
chapter in this volume.
26. Parthasarathi, Why Europe Grew Rich and Asia Did Not, ch. 7.
27. H. J. Cook (2007), Matters of Exchange: Commerce, Medicine, and Science in the Dutch
Golden Age. New Haven: Yale University Press; K. Raj (2007), Relocating Modern Science:
Circulation and the Construction of Scientific Knowledge in South Asia and Europe. Delhi:
Permanent Black.
28. E. Hobsbawm (1962), The Age of Revolutions: Europe, 1789–1848. London: Weidenfield and
Nicolson.
29. Eric Hobsbawm (1969), Industry and Empire. London: Penguin, p. 56.
30. See the chapter by Jack A. Goldstone in this volume.
31. E. J. Hobsbawm (1964), Labouring Men: Studies in the History of Labour. London:
Weidenfield and Nicolson, 107.
32. Hobsbawm (1964), Labouring Men.
33. K. Deng and P. O’Brien (2016), ‘Establishing statistical foundations of a chronology for
the great divergence: A survey and critique of the primary sources for the construction of
relative wage levels for Ming–Qing China’, Economic History Review, 69 (4), 1075. Also see K.
Deng and P. K. O’Brien (2016), ‘China’s GDP per capita from the Han Dynasty to communist
times’, World Economics, 17 (2), 79–123; and Deng and O’Brien (2017), ‘How well did the
facts travel?’
34. S. A. Marglin (1984), Growth, Distribution, and Prices. Cambridge, MA: Harvard University
Press, ch. 18.
35
36
critique’, Journal of Asian Studies, 62 (1), 157–67; K. Pomeranz (2002), ‘Beyond the East-West
binary: Resituating development paths in the eighteenth century world’, Journal of Asian
Studies, 61 (2), 539–90; K. Pomeranz (2003), ‘Facts are stubborn things: A response to Philip
Huang’, Journal of Asian Studies, 62 (1), 167–81; K. Pomeranz (2003), ‘Shijie jingji shi zhong
de jinshi Jiangnan: bijiao yu zonghe guancha’ [Early modern Jiangnan in global economic
history: comparative and integrative perspectives], Lishi yanjiu, 284, 3–48. See also essays by
R. B. Wong (2003), ‘Integrating China into world history’, Journal of Asian Studies, posted at
www.aasianst.org/catalog/wong.pdf; J. A. Goldstone (2003), ‘Europe vs. Asia: Missing data
and misconceptions’, Science and Society, 67 (2), 184–94; J. Lee, C. Campbell, and F. Wang
(2002), ‘Positive check or Chinese checks?’ Journal of Asian Studies, 61 (2), 591–607; S. Cao
and Y. Chen (2002), ‘Maerasi lilun he Qingdai yilaide de Zhongguo renkou: ping Meiguo
xuezhe jinnianlai de xiangguan yanjiu’ [Malthusian theory and Chinese population from the
Qing dynasty onwards: A critique of recent American scholarship), Lishi yanjiu, 275, 41–54;
and A. Wolf (2001), ‘Is there evidence of birth control in late Imperial China?’, Population
and Development Review, 27 (1), 133–54, among others.
45. R. B. Wong (1997), China Transformed: Historical Change and the Limits of European
Experience. Ithaca, NY: Cornell University Press; Pomeranz (2000), The Great Divergence.
46. P. Smith and R. Von Glahn (eds) (2003), The Song Yuan Ming Transition in Chinese History.
Cambridge, MA: Harvard University Press.
37