I chose the particular example of South Korea and Ghana in this section
because it was used to a very different end in
“Cultures count,”
in
Culture Matters:
How Values Shape Human Progress,
Lawrence E. Harrison and Samuel P. Huntington (editors),
Basic Books, 2000.
They essentially argue that the two countries’ different trajectories
are all down to ‘culture.’
That’s a common, and very old, attitude.
“If we learn anything from the history of economic development it is that
culture makes all the difference... what counts is work, thrift,
honesty, patience, tenacity,”
Wealth and Poverty of Nations:
Why Some Are So Rich and Some So Poor,
David S. Landes,
W. W. Norton, 1998, page 516.
See also:
Conquests and Cultures:
An International History,
Thomas Sowell,
Basic Books, 1998, pages 86, 97, and 166.
Also,
Unintended Consequences:
The Impact of Factor Endowments, Culture, and Politics
on Long-Run Economic Performance,
Deepak Lal,
MIT Press, 1998.
On the other hand, a few historians see a much more chaotic
picture—however, they too ascribe basically everything to ‘culture’
and politics, specifically with respect to Europe.
ReORIENT:
Global Economy in the Asian Age,
Andre Gunder Frank,
University of California Press, 1998.
One side, the more dominant one in Anglo-American academia,
essentially says that Europeans are the best.
The other side, a much smaller iconoclastic side of
the same Anglo-American academia,
says that Europeans are the worst. Both assume that ‘culture’ and ideology
are the only things that matter.
Such arguments, and their various counter arguments,
all assume that nothing else changes besides ‘culture’ or ideology. That
seems backwards. Many of our current political ideologies and economic
beliefs only flowered in our last three centuries or so, and that time
has been full of scientific and technological change.
How can we tell if one led to the other? Some group-based
quirks, though, do predate that cutoff time, and it’s possible that
some of them are vastly better at generating or preserving wealth and
power. Capitalism springs to mind, especially with the recent collapse
of communism. Douglass North, much as John Stuart Mill before him,
has long argued that it’s evolving economic institutions
that make the real difference, a view closer to my own.
In general, economists, starting with Adam Smith and John Stuart Mill,
tend to take a more ecumenical view of human ability
and thus focus more on institutions and incentives.
All I would quibble with that position is that it tends to undervalue
all the remaining kinds of technology we develop.
The Lever of Riches:
Technology, Creativity, and Economic Progress,
Joel Mokyr,
Oxford University Press, 1990.
Institutions, Institutional Change, and Economic Performance,
Douglass North,
Cambridge University Press, 1990.
How the West Grew Rich:
The Economic Transformation of the Industrial World,
Nathan Rosenberg and L. E. Birdzell, Jr.,
Another fundamental problem with a
cultural or ideological explanation might be that we don’t have a level
international playing field to decide experimentally which ideology or
culture, if any, is clearly better for gaining material wealth. Every
nation has a history and geography. Differences in initial state, and
differences in ongoing environment, both influence each nation’s wealth
and power.
The text thus avoids culture, religion, and politics
in favor of more concrete, less contentious, and more testable forces.
Besides, many books treat those topics, so there’s no point
going over the arguments yet again.
That doesn’t make them completely irrelevant, though, especially since most
of us think they are. So whether they really are or not is not
important—most of us think they are, and act accordingly.
How we behave is partly determined by what
we believe about how we behave, so even if our physical constraints
dictate one set of choices, we might actually do something different,
if that’s what we believe we must do—at least for a while.
The question of ‘culture’ is very important because
Europeans began to believe that they were the purpose of
the universe, and various religious beliefs, characteristics,
political organizations, legal arrangements, or economic systems were
argued to be the reason why. Starting in the late eighteenth century and
continuing to today, a long line of philosophers, historians, and
sociologists each elaborated various theories of historical development
that, while differing wildly, all assume in one form or another that
we are perfectible creatures on some sort of linear progression, and,
desiring ever increasing creature comforts, we, over time, develop more
and more support for those comforts. More recent philosophers, like
Karl Popper, have attacked such theories as naive, instead likening the
human story to an evolutionary process highly dependent on its initial
conditions, and therefore one with an unpredictable future course.
The text takes more of a middle course—accidents of history do matter,
but broad trajectories are still discernible over our entire species.
Whether there are any special characteristics, outside of historical
happenstance, to explain why Europe industrialized first is of little
direct importance in this text.
However, the question of Europe’s dominance is still
one of the central questions of both modern history and modern economics.
Many authors have tried their hands at it. Here are a few recent ones.
The European Miracle:
Environments Economics and Geopolitics in the History of Europe and
Asia,
Eric L. Jones,
Cambridge University Press, 1981.
Rise and Decline of Nations:
Economic Growth, Stagflation, and Social Rigidities,
Mancur Olson,
Yale University Press, 1982.
How the West Grew Rich:
The Economic Transformation of the Industrial World,
Nathan Rosenberg and L. E. Birdzell, Jr.,
Basic Books, 1982.
The Lever of Riches:
Technological Creativity and Economic Progress,
Joel Mokyr,
Oxford University Press, 1990.
Institutions, Institutional Change, and Economic Performance,
Douglass North,
Cambridge University Press, 1990.
The Colonizer’s Model of the World:
Geographical Diffusionism and Eurocentric History,
J. M. Blaut,
The Guilford Press, 1993.
World Economic Primacy:
1500-1990,
Charles P. Kindleberger,
Oxford University Press, 1996.
Guns, Germs and Steel:
The Fates of Human Societies,
Jared Diamond,
W. W. Norton, 1997.
China Transformed:
Historical Change and the Limits of European Experience,
R. Bin Wong,
Cornell University Press, 1997.
Wealth and Poverty of Nations:
Why Some Are So Rich and Some So Poor
David S. Landes,
W. W. Norton, 1998.
ReORIENT:
Global Economy in the Asian Age,
Andre Gunder Frank,
University of California Press, 1998.
Conquests and Cultures:
An International History,
Thomas Sowell,
Basic Books, 1998.
The Great Divergence:
Europe, China and the Making of the Modern World Economy,
Kenneth Pomeranz,
Princeton University Press, 2000.
My attitude to all that is summed up well in the following two extracts:
“The question of the rise of Western Civilization to economic and
technological domination continues to fascinate scholars...
Almost everything about the topic is in dispute, and
because the rhetoric of this literature almost invariably turns on the “for
example” variety, little persuasion has actually occurred. First, ideology
gets in the way. If one believes in free markets, the West’s commitments to
them explains it all. If one is against free markets, one can either deny
the historical fact of Western predominance altogether or condemn it
squarely. Second, theory is of little help:
economics, politics, sociology,
psychology, and geography all play a role, but none produces a single
consensus view of what matters most. Finally, while the historical record
is rich and immense, it is far from clear if it will ever allow a sharp
discrimination between alternative hypotheses.”
“Eurocentricity Triumphant,”
Joel Mokyr,
a review of David Landes’
The Wealth and Poverty of Nations,
The American Historical Review,
104(4):1241-46, 1999.
“On close inspection, most
characteristics alleged to give a special character to the West turn out
either to be found in non-Western nations too or to have no clear causal
connection to the innovations in constitutions and production processes
that were the key elements in creating Western modernity...
Cultural characteristics long thought to doom Asians to pre-capitalist
life, such as Confucianism, are now seen by some as ideal foundations for
advanced industrial organization. Western Europe’s conquest of the New
World, once seen as unique, may have had counterparts in the Russian
expansion into central and eastern Asia, and in the Qing expansion into
central and southeastern Asia...
Failures of the theory of the West’s “special something” have led
some scholars toward yet a third hypothesis—that there was in fact no
special something that fated the West for superiority over other
civilizations, and that its divergence occurred relatively late (not until
the late eighteenth century) and largely as a concatenation of chance
circumstances.”
“Whose Measure of Reality?”
J. A. Goldstone,
The American Historical Review,
105(2):501-508, 2000.
See also:
“Efflorescences and Economic Growth in World History:
Rethinking the Rise of the West and the British Industrial Revolution,”
J. A. Goldstone,
Journal of World History,
13(2):323-389, 2002.
And:
Growth Recurring:
Economic Change in World History,
Eric L. Jones,
University of Michigan Press, 2000.