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The Great Divergence

The Great Divergence

China, Europe, and the Making of the Modern World Economy
by Kenneth Pomeranz 2000 392 pages
3.69
500+ ratings
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Key Takeaways

1. Pre-Industrial Core Regions Shared Surprisingly Similar Economic Characteristics

"Core regions in China and Japan circa 1750 seem to resemble the most advanced parts of western Europe, combining sophisticated agriculture, commerce, and nonmechanized industry in similar, arguably even more fully realized, ways."

Economic Convergence. The most economically advanced regions across Eurasia—including the Lower Yangzi Delta, parts of China, Japan, and western Europe—exhibited remarkably similar economic structures and development patterns. These regions shared sophisticated agricultural techniques, extensive commercial networks, and complex proto-industrial production systems.

Key Similarities:

  • Highly commercialized agricultural sectors
  • Significant rural handicraft production
  • Extensive long-distance trading networks
  • Comparable levels of technological innovation
  • Similar market-driven growth strategies

Comparative Perspective. Rather than viewing economic development as a linear progression with Europe at the pinnacle, the book suggests a more nuanced understanding of global economic development, emphasizing shared characteristics and parallel evolutionary paths across different regions.

2. European Economic Development Was Not Uniquely Superior

"It seems unlikely that western Europeans were more productive than their contemporaries in various other densely populated regions of the Old World prior to 1750 or even 1800."

Challenging Eurocentrism. Traditional narratives portraying European economic development as inherently superior or inevitable are fundamentally flawed. The most advanced regions of China, Japan, and western Europe demonstrated comparable levels of economic sophistication, technological knowledge, and market development.

Comparative Economic Indicators:

  • Similar life expectancies
  • Comparable agricultural productivity
  • Equivalent levels of technological innovation
  • Comparable market integration
  • Similar consumer demand patterns

Paradigm Shift. The book challenges the notion of European exceptionalism, arguing that no region was predestined for industrial breakthrough, and economic development was contingent on complex global interactions and conjunctures.

3. Population and Living Standards Were Comparable Across Advanced Regions

"Paul Bairoch finds a huge variety in European reports of calorie intake before 1800 and notes that most come from sources on the lives of the privileged."

Demographic Similarities. Contrary to popular narratives, population health, life expectancy, and living standards were remarkably similar across advanced regions. Chinese, Japanese, and European populations exhibited comparable nutritional levels and overall well-being.

Comparative Life Expectancy Data:

  • England: 32-40 years in 1650-1800
  • Japan: 34-55 years in late 18th century
  • China: 35-40 years in similar period
  • Calorie intake: 2,000-3,300 calories per day across regions

Nutritional Equity. The evidence suggests that differences in living standards were more nuanced than previously assumed, with various regions developing sophisticated strategies for managing population health and economic resources.

4. Technological Innovations Were Globally Distributed

"In many areas of textile weaving and dyeing, western Europeans were still working on imitating Indian and Chinese processes."

Global Innovation Landscape. Technological creativity was not a European monopoly. Different regions demonstrated advanced innovations in various domains, challenging the narrative of European technological superiority.

Technological Leadership Examples:

  • China: Advanced irrigation techniques
  • India: Sophisticated textile production
  • Japan: Efficient stove design
  • Europe: Waterwheel technology
  • Multiple regions: Independent smallpox prevention development

Contextual Innovation. Technological progress was context-dependent, with different societies developing specialized solutions appropriate to their specific ecological and economic conditions.

5. Land and Labor Markets Functioned Remarkably Similarly

"At least in the eighteenth century, core regions in China and western Europe were remarkably similar in their market structures and economic institutions."

Market Convergence. Land and labor markets in advanced regions of China and western Europe were surprisingly similar, often contradicting assumptions about European market superiority. Both regions demonstrated sophisticated market mechanisms and economic flexibility.

Market Characteristics:

  • Relatively free land transfers
  • Competitive labor markets
  • Extensive commercial networks
  • Flexible agricultural production systems
  • Complex tenant-landlord relationships

Institutional Similarities. The book argues that economic institutions across these regions were more alike than different, challenging narratives of unique European economic development.

6. Luxury Consumption Patterns Resembled Each Other Across Regions

"The development of luxury consumption was not exactly alike in any two societies. Nor can this book investigate all the ways in which the meanings of consumption varied among societies."

Consumer Culture Parallels. Elite and popular consumption patterns in China, Japan, and western Europe exhibited striking similarities in the evolution of luxury goods, status signaling, and market dynamics.

Consumption Trends:

  • Increasing variety of consumer goods
  • Growing importance of material possessions
  • Emerging fashion systems
  • Proliferation of consumption guides
  • Similar patterns of status competition through goods

Cultural Nuances. While consumption patterns varied, the underlying mechanisms of luxury demand and social status representation were remarkably consistent across regions.

7. Global Conjunctures, Not Inherent European Superiority, Drove Economic Transformation

"We cannot understand pre-1800 global conjunctures in terms of a Europe-centered world system; we have, instead, a polycentric world with no dominant center."

Complex Global Interactions. Economic transformation resulted from intricate global interactions rather than inherent European superiority. Chance events, epidemiological factors, and interconnected trade networks played crucial roles in shaping economic development.

Key Global Factors:

  • Silver trade dynamics
  • Epidemic disease patterns
  • Interconnected maritime networks
  • Resource availability
  • Technological knowledge exchange

Contingent Development. Economic progress was fundamentally contingent and unpredictable, emerging from complex global interactions rather than predetermined historical trajectories.

8. Overseas Resources and Colonies Were Crucial for European Economic Breakthrough

"Without both coal and colonies, neither one would have been nearly as significant."

Resource Transformation. European economic breakthrough depended critically on accessing vast overseas resources, particularly from the Americas. These resources provided crucial ecological relief and expanded economic possibilities.

Colonial Resource Impacts:

  • Land-intensive product acquisitions
  • Slave labor systems
  • Silver and monetary innovations
  • Agricultural expansion
  • Demographic transformations

Ecological Windfall. Colonies provided Europeans with unprecedented access to resources, enabling them to overcome ecological constraints that had limited economic growth.

9. Ecological Constraints Challenged All Advanced Economies

"All these core areas were experiencing modest per capita growth, mostly through increased division of labor, within a context of basic technological and ecological constraints that markets alone could not solve."

Universal Ecological Challenges. All advanced economies faced similar ecological constraints, including land scarcity, deforestation, and limited agricultural productivity. No region had inherently superior resource management.

Ecological Pressures:

  • Declining forest cover
  • Soil degradation
  • Limited agricultural yields
  • Resource competition
  • Population growth challenges

Shared Developmental Limits. Ecological constraints represented a fundamental challenge to economic expansion across advanced regions, not a uniquely European problem.

10. Military Competition and State Structures Shaped Economic Possibilities

"Interstate competition probably mattered more than either entrepreneurial talents or curiosity about exotic goods per se in making Europe's overseas commercial expansion distinctive."

Political Economic Dynamics. Military competition and state structures profoundly influenced economic possibilities, particularly in facilitating overseas expansion and resource acquisition.

State Intervention Mechanisms:

  • Monopoly privileges
  • Colonial chartering
  • Armed trading companies
  • Interstate rivalries
  • Fiscal-military innovations

Institutional Flexibility. European states' ability to create flexible economic institutions and support overseas ventures provided a unique developmental pathway.

Last updated:

FAQ

What's The Great Divergence about?

  • Comparative Economic Development: The book examines the economic development paths of China and Europe, focusing on why Europe industrialized while China did not.
  • Historical Context: Kenneth Pomeranz explores historical factors contributing to the "Great Divergence," emphasizing ecological constraints and resource access.
  • Methodology: Pomeranz uses a comparative analysis, particularly focusing on the Yangzi Delta in China and various parts of Europe.

Why should I read The Great Divergence?

  • Challenging Conventional Wisdom: The book offers a fresh perspective on economic history, challenging the idea of European exceptionalism.
  • Rich Comparative Analysis: Pomeranz's detailed comparisons provide valuable insights into how societies responded to similar challenges.
  • Broader Implications: Understanding the divergence in economic paths informs contemporary discussions on development and globalization.

What are the key takeaways of The Great Divergence?

  • Shared Economic Features: Both China and Europe had commercialization and market-driven growth before 1800, challenging the notion of a unique European path.
  • Role of Resources: Access to overseas resources, especially from the Americas, was crucial for Europe's industrial growth.
  • Ecological Constraints: Ecological factors shaped economic development, with both regions facing significant pressures influencing their practices.

How does Kenneth Pomeranz define "the Great Divergence"?

  • Economic Disparity: The Great Divergence refers to the economic gap between Western Europe and other parts of the world during the 19th century.
  • Historical Context: Pomeranz argues it was not inevitable but resulted from specific historical contingencies, including resource access.
  • Comparative Analysis: The divergence was influenced by external resources and global dynamics, not just internal European factors.

What are the main arguments against Europe-centered narratives in The Great Divergence?

  • Questioning Exceptionalism: Pomeranz challenges the idea of European exceptionalism, highlighting comparable economic practices in China.
  • Shared Constraints: Both regions faced similar ecological and demographic constraints, suggesting less pronounced differences in outcomes.
  • Importance of External Resources: Europe's access to New World resources was crucial, without which it might have followed a path similar to China.

How does The Great Divergence address the role of technology in economic development?

  • Technological Comparisons: Pomeranz argues that Europe gained a technological edge only after the Industrial Revolution, with similar levels before 1800.
  • Contextual Factors: Technological advancements were contingent on historical and ecological contexts, not cultural superiority.
  • Impact of Resources: Access to resources, especially fossil fuels, was crucial for enabling technological advancements in Europe.

What role did colonialism play in the arguments presented in The Great Divergence?

  • Resource Access: Colonialism provided Europe with access to vast resources from the New World, crucial for economic development.
  • Economic Exploitation: The exploitation of non-European societies contributed to European wealth, challenging the idea of internal development factors.
  • Global Context: Colonialism is situated within a broader global context, highlighting the interconnectedness of global economic systems.

How does The Great Divergence explain the differences in consumption patterns between Europe and China?

  • Luxury Consumption: European elites displayed wealth through luxury goods, while Chinese consumption was more practical.
  • Everyday Luxuries: Europe saw a significant increase in goods like sugar and tea, while China had a long history of luxury consumption.
  • Economic Implications: Consumption patterns influenced the types of goods produced and market structures, reflecting cultural attitudes.

What is the "objectification of luxury" in The Great Divergence?

  • Definition of Objectification: Material possessions become symbols of status and identity, influencing social dynamics.
  • Comparative Analysis: This phenomenon was prevalent in Europe, with similar trends in China and Japan.
  • Impact on Economic Growth: Increased consumer demand stimulated economic activity, contributing to divergent economic trajectories.

How does Pomeranz compare the economic systems of China and Europe?

  • Resource Allocation: Both regions faced ecological constraints but managed resources differently, affecting outcomes.
  • State Involvement: European states often granted monopolies, facilitating capital accumulation.
  • Cultural Factors: Cultural attitudes towards consumption and wealth played a significant role in economic divergence.

What is the significance of the New World in The Great Divergence?

  • Resource Supply: The New World provided essential resources that alleviated ecological constraints in Europe.
  • Labor Systems: Unique labor systems, like slavery, allowed for cash crop production that fueled European economies.
  • Economic Interdependence: The flow of resources and capital from the New World supported Europe’s economic growth.

How does The Great Divergence explain the concept of "under consumption"?

  • Definition of Under Consumption: A situation where production exceeds consumer purchasing power, leading to stagnation.
  • Social Structure Influence: Rooted in social structures and demographic conditions, not just market failures.
  • Comparative Context: Regions with rigid social structures experienced more pronounced under consumption issues.

Review Summary

3.69 out of 5
Average of 500+ ratings from Goodreads and Amazon.

The Great Divergence by Kenneth Pomeranz is a dense, meticulously researched work comparing economic development in Europe and Asia. Pomeranz argues that Europe's divergence from Asia occurred after 1800, primarily due to access to New World resources and coal. While praised for its thorough analysis and challenge to Eurocentric views, the book is criticized for its difficult prose and potential underestimation of cultural factors. Readers find it informative but challenging, with some questioning the strength of Pomeranz's arguments and data interpretation.

Your rating:

About the Author

Kenneth Pomeranz is a distinguished historian and University Professor at the University of Chicago. Born in 1958, he earned his B.A. from Cornell University and Ph.D. from Yale University under Jonathan Spence's guidance. Pomeranz taught at UC Irvine for over two decades before joining the University of Chicago. His academic achievements include being elected a Fellow of the American Academy of Arts & Sciences in 2006 and serving as president of the American Historical Association in 2013-14. Pomeranz's work focuses on comparative economic history, particularly the development of Asia and Europe.

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