Why are some parts of the world so rich and others so poor? Why did the Industrial Revolution–and the unprecedented economic growth that came with it–occur in eighteenth-century England, and not at some other time, or in some other place? Why didn’t industrialization make the whole world rich–and why did it make large parts of the world even poorer? In A Farewell to Alms, Gregory Clark tackles these profound questions and suggests a new and provocative way in which culture–not exploitation, geography, or resources–explains the wealth, and the poverty, of nations.
Countering the prevailing theory that the Industrial Revolution was sparked by the sudden development of stable political, legal, and economic institutions in seventeenth-century Europe, Clark shows that such institutions existed long before industrialization. He argues instead that these institutions gradually led to deep cultural changes by encouraging people to abandon hunter-gatherer instincts-violence, impatience, and economy of effort-and adopt economic habits-hard work, rationality, and education.
The problem, Clark says, is that only societies with long histories of settlement and security seem to cultivate the cultural characteristics and effective workforces necessary for sustained economic growth. For many societies that have not enjoyed extended periods of stability, industrialization often becomes more of a challenge than a blessing, lacking the foundation needed for it to thrive. This dynamic is reminiscent of how certain industries, such as non Gamstop casinos, have adapted to meet specific demands in evolving markets. These casinos cater to players seeking alternatives outside traditional frameworks, much like societies that must innovate and adjust to external pressures without the luxury of historical stability. Clark also critiques the idea, popularized by Jared Diamond in Guns, Germs, and Steel, that natural endowments like geography alone explain differences in the wealth of nations, suggesting instead that the interplay of cultural and historical factors is far more significant. This perspective highlights the importance of adaptability in both societies and industries facing unique challenges.
A brilliant and sobering challenge to the idea that poor societies can be economically developed through outside intervention, A Farewell to Alms may change the way global economic history is understood.
Link (via Martin Schürrer, bagasch mailing list)