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David S. Landes - The Wealth and Poverty of Nations: Why Some Are So Rich and Some So Poor

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David S. Landes The Wealth and Poverty of Nations: Why Some Are So Rich and Some So Poor
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Readers cannot but be provoked and stimulated by this splendidly iconoclastic and refreshing book.Andrew Porter, New York Times Book Review

The Wealth and Poverty of Nations is David S. Landess acclaimed, best-selling exploration of one of the most contentious and hotly debated questions of our time: Why do some nations achieve economic success while others remain mired in poverty? The answer, as Landes definitively illustrates, is a complex interplay of cultural mores and historical circumstance. Rich with anecdotal evidence, piercing analysis, and a truly astonishing range of erudition, The Wealth and Poverty of Nations is a picture of enormous sweep and brilliant insight (Kenneth Arrow) as well as one of the most audaciously ambitious works of history in decades.
For the paperback edition, Landes has written a new epilogue, in which he takes account of Asian financial crisises and the international tension between overconfidence and reality. Maps

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The Wealth and Poverty of Nations

Why Some Are So Rich and Some So Poor

DAVID S. LANDES

Picture 1

W. W. NORTON & COMPANY

New York London

Copyright 1999, 1998 by David S. Landes

All rights reserved
First published as a Norton 1999

For information about permission to reproduce selections from this book, write to Permissions, W. W. Norton & Company, Inc., 500 Fifth Avenue, New York, NY 10110.

Library of Congress Cataloging-in-Publication Data

Landes, David S.
The wealth and poverty of nations: why some are so rich and some
so poor / by David S. Landes.
p. cm.
Includes bibliographical references.
ISBN: 978-0-393-04017-3
1. WealthEuropeHistory. 2. WealthHistory. 3. Poverty
EuropeHistory. 4. PovertyHistory. 5. Regional economic
disparitiesHistory. 6. Economic history. 7. Economic
developmentSocial aspects. I. Title.
HC240.Z9W45 1998
330.16dc21 97-27508
CIP

W. W. Norton & Company, Inc.
500 Fifth Avenue, New York, N.Y. 10110
www.wwnorton.com

W. W. Norton & Company Ltd.
Castle House, 75/76 Wells Street, London WIT 3QT

Praise for
The Wealth and Poverty of Nations

Truly wonderful. No question that this will establish David Landes as preeminent in his field and in his time.

John Kenneth Galbraith

David Landess new historical study of the emergence of the current distribution of wealth and poverty among the nations of the world is a picture of enormous sweep and brilliant insight. The sense of historical contingency does not detract from the emergence of repeated themes in the encounters which led to European economic leadership. The incredible wealth of learning is embodied in a light and vigorous prose which carries the reader along irresistibly.

Kenneth Arrow

David Landes has written a masterly survey of the great successes and failures among the worlds historic economies. He does it with verve, broad vision, and a whole series of sharp opinions that he is not shy about stating plainly. Anyone who thinks that a societys economic success is independent of its moral and cultural imperatives obviously has another think coming.

Robert Solow

Mr. Landes writes with verve and gusto. This is indeed good history.

Douglass C. North, Wall Street Journal

You cannot even begin to think about problems of economic development and convergence without knowing the story that Landes tells. I know of no better place to start thinking about the wealth and poverty of nations.

J. Bradford DeLong, Washington Post

Enormously erudite and provocative. Never less than scintillating, witty, and brilliant.

Kirkus Reviews

Also by DAVID S. LANDES

B ANKERS AND P ASHAS

T HE U NBOUND P ROMETHEUS

R EVOLUTION IN T IME

For my children and grandchildren, with love.

the causes of the wealth and poverty of nationsthe grand object of all enquiries in Political Economy.

Malthus to Ricardo, letter of 26 January 1817

Contents
Preface and Acknowledgments

My aim in writing this book is to do world history. Not, however, in the multicultural, anthropological sense of intrinsic parity: all peoples are equal and the historian tries to attend to them all. Rather, I thought to trace and understand the main stream of economic advance and modernization: how have we come to where and what we are, in the sense of making, getting, and spending. That goal allows for more focus and less coverage. Even so, this is a very big task, long in the preparing, and at best represents a first approximation. Such a task would be impossible without the input and advice of otherscolleagues, friends, students, journalists, witnesses to history, dead and alive.

My first debt is to students and colleagues in courses at Columbia University, the University of California at Berkeley, Harvard University, and other places of shorter stays. In particular, I have learned from working and teaching in Harvards undergraduate programs in Social Studies and the Core Curriculum. In both of these, teachers come into contact with students and assistants from the full range of concentrations and other faculties and have to field challenges from bright, contentious, independent people, unintimidated by differences in age, rank, and experience.

Second, thanks largely to the sympathetic understanding of Dr. Alberta Arthurs, this work received early support from the Rockefeller Foundation, which funded research and writing and brought a number of scholars together for inspiration and intellectual exchange in its beautiful Villa Serbelloni in Bellagio, Italythere where the younger Pliny once reconciled beauty, work, and leisure on the shores of Lake Como. Easy to succumb. The meeting led to publication of Favorites of Fortune (eds. Patrice Higonnet, Henry Rosovsky, and myself) and gave me the opportunity to write a first essay on the recent econometric historiography of European growth. Among the people who helped me then and on other occasions, my two co-editors, Higonnet and Roskovsky; also Robert Fogel, Paul David, Rudolf Braun, Wolfram Fischer, Paul Bairoch, Joel Mokyr, Robert Allen, Francois Crouzet, William Lazonick, Jonathan Hughes, Francois Jequier, Peter Temin, Jeff Williamson, Walt Rostow, Al Chandler, Anne Krueger, Irma Adelman, and Claudia Goldin.

The Rockefeller Foundation also supported two thematic conferencesone on Latin America in 1988 and another on the role of gender in economic activity and development the following year. Among those who contributed to these stimulating dialogues, exercises in rapid-fire instruction, I want to cite David Rock, Jack Womack, John Coatsworth, David Felix, Steve Haber, Wilson Suzigan, Juan Dominguez, Werner Baer, Claudia Goldin, Alberta Arthurs, and Judith Vichniac.

I also owe a debt of gratitude to Armand Clesse and the Luxembourg Institute for European and International Studies. Mr. Clesse has become one of the key figures in the mobilization of scholars and intellectuals for the discussion and analysis of contemporary political, social, and economic problems. His main theme is the vitality of nations, which has been interpreted broadly to mean just about anything relevant to national performance. The product has been a series of conferences, which have not only yielded associated volumes but promoted a growing and invaluable network of personal contacts among scholars and specialists. A Clesse conference is a wonderful mixture of debate and sociabilitya usually friendly exercise in agreement and disagreement. In 1996, Mr. Clesse organized just such a meeting to deal with the unfinished manuscript of this book. Among those present: William McNeill, global historian and successor in omniscience to that earlier historian of Greece, Arnold Toynbee; Stanley Engerman, Americas economic history reader and critic extraordinary; Walt Rostow, perhaps the only scholar to return to original scholarship after government service; Rondo Cameron, lone crusader against the concept and term of Industrial Revolution; Paul Bairoch and Angus Maddison, collectors and calculators of the numbers of growth and productivity.

A similar meeting, on The Singularity of European Civilization, was held in June 1996 in Israel, under the sponsorship of the Yad Ha-Nadiv Rothschild Foundation (Guy Stroumsa, coordinator), bringing some of the same people plus another team, medieval and other: Patricia Crone, Ron Bartlett, Emanuel Sivan, Esther Cohen, Yaacov Metzer, Miriam Eliav-Feldon, Richard Landes, Gadi Algazi, et al.

Other venues where I was able to try out some of this material were meetings in Ferrara and Milan (Bocconi University) in 1991; the III Curso de Historia de la Tcnica in the Universidad de Salamanca in 1992 (organizers Julio Sanchez Gomez and Guillermo Mira); a Convegno in 1993 of the Societ Italiana degli Storici dellEconomia (Vera Zamagni, secretary) on the theme of Innovazione e Sviluppo several sessions of the Economic History Workshop at Harvard; the Jornadas Bancarias of the Asociacin de Bancos de la Repblica Argentina in Buenos Aires in 1993 on Las Estrategias del Desarrollo a congress in Hull, England, in 1993 (Economic History Society, Tawney Lecture); a conference in Cambridge University on Technological Change and Economic Growth (Emma Rothschild, organizer) in 1993; Jacques Marseille and Maurice Levy-Lcboyers colloquium (Institut dHistoire conomique, Paris, 1993) on Les performances des entreprises franaises au XXe sicle a conference on Convergence or Decline in British and American Economic History at Notre Dame University in 1994 (Edward Lorenz and Philip Mirowski organizers, Donald McCloskey promoter); a session on the Industrial Revolution (John Komlos organizer) at the Eleventh International Economic History Congress in Milan in 1994; and a session at the Social Science History Association in Atlanta in 1994.

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