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The Great Divergence: China, Europe, and the Making of the Modern World Economy.

The Great Divergence: China, Europe, and the Making of the Modern World Economy.
By Kenneth Pomeranz

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The Great Divergence brings new insight to one of the classic questions of history: Why did sustained industrial growth begin in Northwest Europe, despite surprising similarities between advanced areas of Europe and East Asia? As Ken Pomeranz shows, as recently as 1750, parallels between these two parts of the world were very high in life expectancy, consumption, product and factor markets, and the strategies of households. Perhaps most surprisingly, Pomeranz demonstrates that the Chinese and Japanese cores were no worse off ecologically than Western Europe. Core areas throughout the eighteenth-century Old World faced comparable local shortages of land-intensive products, shortages that were only partly resolved by trade.

Pomeranz argues that Europe's nineteenth-century divergence from the Old World owes much to the fortunate location of coal, which substituted for timber. This made Europe's failure to use its land intensively much less of a problem, while allowing growth in energy-intensive industries. Another crucial difference that he notes has to do with trade. Fortuitous global conjunctures made the Americas a greater source of needed primary products for Europe than any Asian periphery. This allowed Northwest Europe to grow dramatically in population, specialize further in manufactures, and remove labor from the land, using increased imports rather than maximizing yields. Together, coal and the New World allowed Europe to grow along resource-intensive, labor-saving paths.

Meanwhile, Asia hit a cul-de-sac. Although the East Asian hinterlands boomed after 1750, both in population and in manufacturing, this growth prevented these peripheral regions from exporting vital resources to the cloth-producing Yangzi Delta. As a result, growth in the core of East Asia's economy essentially stopped, and what growth did exist was forced along labor-intensive, resource-saving paths--paths Europe could have been forced down, too, had it not been for favorable resource stocks from underground and overseas.


Product Details

  • Amazon Sales Rank: #115128 in Books
  • Published on: 2001-12-03
  • Number of items: 1
  • Binding: Paperback
  • 392 pages

Editorial Reviews

From Booklist
Pomeranz is a history professor at the University of California^-Irvine and the author of The Making of a Hinterland: State, Society, and Economy in Inland North China, 1853^-1937 (1993), an academic study that investigated the role of steam-powered transportation (among other developments) in the growth of China's Shantung Province. He is also the coauthor of the more popularly accessible The World That Trade Created (1999). Now he looks at the question of why sustained industrial growth began in northwestern Europe but not East Asia. To even ask the question can bring charges of Eurocentrism, but Pomeranz acknowledges the role of colonialism in Europe's growth. He emphasizes, though, Europe's access to America's resources as one of two contributing factors to industrial growth, the second being the widespread availability within Europe of coal as a fuel. After challenging the convention that Europe held an edge before 1800, he traces with scholarly diligence the diverging patterns of growth between Europe and China. David Rouse

Choice
Pomeranz's study is an important addition to the literature that challenges elements of every major interpretation of the European take-off.

Review
The vast international disparity in incomes and standards of living between Western Europe and its offshoots on the one hand, and most of Asia, Africa, and Latin America on the other, is a striking feature of the modern world. Pomeranz's study is an important addition to the literature that challenges elements of every major interpretation of the European take-off.
(Choice )

A profoundly though-provoking book which will change the terms of the debate about the origins of capitalism, the rise of the West and the fall of the East.
(Jack Goody Times Higher Education Supplement )

This book makes, bar none, the biggest and most important contribution to our new understanding of the causes and mechanisms that brought about the great divergence' between the West and the rest of China in particular. . . . An entirely new and refreshing departure. Although he makes new comparisons between Europe, China, Japan, India, Southeast Asia, Pomeranz also connects all these and more in a bold new sweep that should immediately make all previous and most contemporary related work obsolescent.
(Andre Gunde Frank Journal of Asian Studies )

This book is very important and will have to be taken seriously by anyone who thinks that explaining the Industrial Revolution . . . is crucial to our understanding of the modern world. . . . [A] book so rich that fresh insights emerge from virtually every page.
(Robert B. Marks American Historical Review )

Exhaustively researched and brilliantly argued. . . . Suffice it to say that The Great Divergence is undoubtedly one of the most sophisticated and significant pieces of cliometric scholarship to be published of late, especially in the field of world history.
(Edward R. Slack, Jr. Journal of World History )


Customer Reviews

Powerful data and arguments5
Kenneth Pomeranz's The Great Divergence reinforces some arguments of Frank's ReOrient and reformulates some others. Like Frank, Pomeranz argues that European economy was not unusually different from or superior to the economies of China and Japan until the 19th century. Like Frank, Pomeranz also argues that the critical factors that made possible the rise of Europe were external rather than internal factors. However, unlike Frank who explained the rise of the West in the 19th century through "the fall of Asia" in the previous century, Pomeranz attributes the nineteenth-century divergence between the European economy and the Asian economies to Europe's coal and New World's land that jointly relived the ecological constraints of the nineteenth-century Europeans.

Explaining Pre-Divergence Similarities:

Pomeranz starts his book with comparisons of European and Asian economies in 16th through 18th centuries. A difference in Pomeranz's approach is that he prefers to compare "regions" rather than countries. He argues that such places as Yangzi Delta, The Kanto plain, Britain, the Netherlands, and Gujarat, shared some crucial features with each other, which they did not share with the rest of the world or subcontinent around them. Thus, he prefers to compare these special areas directly rather than within the larger "arbitrary" continental units (p. 8).

Pomeranz first demonstrates that there were no significant differences between England, China, and Japan in terms of average standards of life. Average life expectancy and calorie intake were at comparable levels in all three countries. In the same vein, the European had no superiority to Asians with respect to technology and mining. China was ahead of Europe in physical science, mathematics, and maternal and infant health. Europe's irrigation technology also lagged behind China, India, and Japan. Even as late as first half of the 19th century, Indian iron was reported to be superior to English iron (pp. 44-6). If Europe had any real technological edge in the 18th century, it was not in tools or machines, but in "instruments" such as clocks, watches, telescopes, and eyeglasses (p. 67).

Pomeranz then tries to show that differences in terms of labor and land markets in Europe and China in 16th through 18th centuries were significant and did not always favor Europe so that they would be a viable explanation for the later divergence. Indeed, overall China was closer to market economy than was most of Europe, including most of "western" Europe. Much of Western Europe's farmland was harder to buy and sell than that of China. In Yangzi Valley, for example, close to half of land was rented (p. 72-3). This was also similar in labor market. Labor was not less free in China than in Europe (pp. 80-1). Thus, Pomeranz concludes that Europe's factor markets for land and labor "seem no closer to Smithian ideas of freedom and efficiency than do those of China, and perhaps a good deal less so," (p. 107).

Part II of The Great Divergence deals with the less-analyzed issue of consumption. Pomeranz takes issue with Sombart and some others' argument that Europe a produced a unique "consumer society" that provided a demand base for industrial revolution. Pomeranz challenges the "consumer society" argument on two grounds. On the one side, he demonstrates that the rise in the European consumption of such luxury goods as tea, sugar, and tobacco was very incremental until the 19th century. He therefore asserts that imagining an irreversible "birth of a consumer society" before 1850 may be seriously misleading (p. 119). On the other side, he demonstrates that consumption of these everyday luxury goods were at comparable levels in China and Japan. The consumption of durable luxuries (furniture, pictures, china, books, jewelry, etc.) was not significantly different in these three regions either (pp. 130-1). Thus, Europe did not have any type of "consumer society" advantage vis-à-vis China and Japan that would give her a head start in the competition to rise. I should also note that European figures as to consumption of luxury goods refute the arguments on "European" miracle as well. Pomeranz demonstrates that, if anything, it was a British, and to lesser extent Dutch, revolution and not a European one until 1850 (pp. 119).

To sum up the first part, Pomeranz demonstrates that Europe was not exceptionally different from China or Japan in terms of production, market regulation, or the consumption of luxury goods. Given this similarity of internal factors, Pomeranz turns to external linkages to explain the nineteenth-century divergence.

Explaining the Divergence:

A weakness in Andre Gunder Frank's book was that he could not adequately account for the "rise of the West" in the late 18th and early 19th centuries. Frank's argument was that Asian economies were altogether facing a Kondratieff B-cycle in the first half of the 18th century and this allowed Europe to finally outdo the Asians. He therefore asserts that "the fall of Asia" preceded European political and military intervention in Asian nations (ReOrient, pp. 266-8). Pomeranz finds this argument impressionistic and discards it on the grounds that population growth and ecological effects that were argued to make China "fall" were present in Europe as well. Thus, he asserts, "if Europe was not yet in crisis, then in all likelihood China was not either," (p. 12).

Pomeranz argues that the primary problem that both European and Asian nations were facing by 18th century were the ecological constraints that resulted from increasing population and scarce land. Therefore, the real and long-lasting solution would necessitate land-saving innovations rather than labor-saving ones.
As such, industrial revolution was a cause of later European rise than result of previous European exceptionality.

A Conclusion:
When compared with Frank's ReOrient, Pomeranz's The Great Divergence is more robust and convincing in two respects. First, it does not have a "Sinocentrism" bias and argues that the pre-1800 world was "a polycentric world with no dominant center," (p. 4). Second, it tries to explain the rise of Europe in the 19th century with substantive factors rather than mysterious Kondratieff cycles. In that respect, The Great Divergence is a nice remedy to the gaps and problems in ReOrient. However, I think that Pomeranz's downplaying the importance of profits that European made through colonialism is misleading. In evaluating the role of colonial profit-extraction in Europe's rise, one should take into account its impact on the continuation and spread of industrial revolution as well as on industrial revolution itself. Even if the spark of the industrial revolution could be lighted without the profits made in the New World, the fire of industrial revolution would not have survived a couple decades if it were not for the colonial resources and markets.

povocative and meticulously researched!4
The strengths: Very provocative, aiming straight at conventional wisdom, be it euro-centric or world-system ones. Solid research behind the comparative study of Europe, China, and to a lesser extend, Japan. Pomeranz gives out hard evidence in life-expectacy, birth rates, market condition, ecological stress etc., hightlighting striking similarites between these socities in the 18th century.

Some readers may have problem with his conclusion that industrialization went ahead only because Europe got lucky in the convenient location of coal and the readily available resourses of the new world. However, just because these are paramount factors does not mean that they are all it needed. Put another way, had China got the same good fortune, it does not necessarily follow that China would industrilize, nor has Pomeranz argued this way.

Weaknesses: The writing is BAD, very convoluted. However, the most important failure is that Pomeranz treats these societies as though they were static. He failed to take into consideration their difference in the RATE of change. The fact that Europe was playing a catch up to Asia through-out the middle ages, and achieved par in pre-modern time, had to imply a quicker pulse. Europe's gradual opening of the mind (reformation ,renaissance), was roughly concurrent with China's gradual closing (the advent of neo-confucianism, ossification of the civil examination system). It's hard to believe that this change of fortune had no long-lasting impact on the underlying dynamics of the societes. Culture does matter, it's just been given a bad name by the likes of Huntington and Landes:)

Europe Got Lucky4
Pomeranz advances the thesis that Europe's rise to world power (instead of a potentially similar but not historically realized rise by China, Japan, or India) was not caused by any internal social advantage possessed by western Europe-at least not principally caused. Pomeranz uses extensive research to demonstrate that western Europe, China, and Japan were not fundamentally different societies at the beginning of the modern era. The author maintains that Europe had the good fortune of having the land and mineral resources of the New World available at the right time, along with the conveniently-located coal resources of England; and it is this collection of fortuitous advantages that enabled Europe to propel itself into industrial revolution and world power.

The premise of the book is promising. The meat of the book can be a bit difficult to chew. The author compares the human, energy, land, and other resources of Europe and China in great detail to make his case. The sheer volume of facts and figures can make the going slow. Still, it's worth reading all of what the author has to say.

Overall, the argument is compelling. All three societies (western Europe, China, and Japan) were faced with populations that had more-or-less come in line with the carrying capacities of their lands based on the level of technology of the day. Additional agricultural productivity could only have come with additional inputs of labor into the existing stock of land. This is essentially what happened in China. Western Europe, led by England, went the way of labor-saving techniques and technologies that would not have been practicable without access to the additional agricultural potential and mineral wealth of the New World. Other factors, such as financial institutions and internal competition fade in importance before the simple math of carrying capacity.

The Great Divergence is quality reading. One does not have to agree with everything contained in the book to absorb the basic point: Europe got lucky. Be prepared to wade through an appropriately generous supply of facts and figures to back Pomeranz's claim.