THE CAMBRIDGE HISTORY OF CAPITALISM

Transcription

1 THE CAMBRIDGE HISTORY OF CAPITALISM The second volume of The Cambridge History of Capitalism provides an authoritative reference on the spread and impact of capitalism across the world, and the varieties of responses to it. Employing a wide geographical coverage and strong comparative outlook, a team of leading scholars explore the global consequences that capitalism has had for industry, agriculture, and trade, along with the reactions by governments, firms, and markets. The authors consider how World War I halted the initial spread of capitalism, but global capitalism arose again by the close of the twentieth-century. They explore how the responses of labor movements, compounded by the reactions by political regimes, whether defensive or proactive, led to diverse military and welfare consequences. Beneficial results eventually emerged, but the rise and spread of capitalism has not been easy or smooth. This definitive volume will have widespread appeal amongst historians, economists, and political scientists. L ARRY N EAL is Emeritus Professor of Economics at the University of Illinois, Urbana-Champaign, Research Associate of the National Bureau of Economic Research, and Visiting Professor at the London School of Economics and Political Science. Specializing in financial history and European economies, he is author of The Rise of Financial Capitalism: International Capital Markets in the Age of Reason (Cambridge University Press, 1990), The Economics of Europe and the European Union (Cambridge University Press, 2007), and I Am Not Master of Events : The Speculations of John Law and Lord Londonderry in the Mississippi and South Sea Bubbles (2012). He is co-editor of The Origins and Development of Financial Markets and Institutions: From the Seventeenth Century to the Present (Cambridge University Press, 2009). J EFFREY G. WILLIAMSON is Emeritus Laird Bell Professor of Economics, Harvard University, and Honorary Fellow in the Department of Economics, University of Wisconsin-Madison. He is also Research Associate of the National Bureau of Economic Research, Research Fellow at the Centre for Economic Policy Research, and has been a visiting professor at seventeen universities around the world. Professor Williamson specializes in development, inequality, globalization, and history, and he is the author of around 230 scholarly articles and 30 books, his most recent being Trade and Poverty: When the Third World Fell Behind (2011), Globalization and the Poor Periphery before 1950 (2006), Global Migration and the World Economy (2005, with T. Hatton), and Globalization in Historical Perspective (2003, edited with M. Bordo and A. M. Taylor).

2 Cambridge University Press gratefully acknowledges the support of the BBVA Foundation in hosting and funding two workshops attended by contributors to the volume. The BBVA Foundation expresses the BBVA Group s commitment to the improvement and welfare of the numerous societies in which it operates through the promotion of scientific research, innovation, and cultural creation, and their transmission to society using diverse channels and formats. Its work programs scrupulously respect the academic organization of knowledge and artistic creation and the principle of peer review, while facilitating the development of projects arising from the interaction of various fields and, particularly, emerging projects which move forward the frontiers of knowledge and thought. Among its multiple activities are the funding and co-organization of research projects, advanced training, lectures aimed at the general public, workshops, the endowment of special chairs, awards for researchers and creators (notably, the Frontiers of Knowledge Awards family, spanning eight categories and directed at the international community), publications under its own imprint and in partnership with academic publishers of excellence, and the recording and diffusion of classical and contemporary music. Its areas of focus are Basic Sciences, Biomedicine, Environmental Sciences, Economics and Social Sciences, the Humanities and the Arts (particularly music and painting).

3 THE CAMBRIDGE HISTORY OF CAPITALISM VOLUME II The Spread of Capitalism: * * Edited by LARRY NEAL and JEFFREY G. WILLIAMSON

4 University Printing House, Cambridge cb2 8bs, United Kingdom Cambridge University Press is part of the University of Cambridge. It furthers the University s mission by disseminating knowledge in the pursuit of education, learning, and research at the highest international levels of excellence. Information on this title: / Cambridge University Press 2014 This publication is in copyright. Subject to statutory exception and to the provisions of relevant collective licensing agreements, no reproduction of any part may take place without the written permission of Cambridge University Press. First published rd printing 2015 First paperback edition Printed in the United Kingdom by TJ International Ltd, Padstow, Cornwall A catalogue record for this publication is available from the British Library isbn Hardback isbn Paperback Cambridge University Press has no responsibility for the persistence or accuracy of URLs for external or third-party internet websites referred to in this publication, and does not guarantee that any content on such websites is, or will remain, accurate or appropriate.

5 Contents List of figures page vii List of tables viii List of contributors ix 1. Introduction: the spread of and resistance to global capitalism 1 kevin h. o rourke and jeffrey g. williamson 2. The spread of manufacturing 22 robert c. allen 3. Growth, specialization, and organization of world agriculture 47 giovanni federico 4. Technology and the spread of capitalism 82 kristine bruland and david c. mowery 5. Spread of legal innovations defining private and public domains 127 ron harris 6. Firms and global capitalism 169 geoffrey jones 7. Enterprise models: freestanding firms versus family pyramids 201 randall morck and bernard yeung 8. Financial capitalism 230 ranald michie v

6 Contents 9. International capital movements and the global order 264 harold james 10. Capitalism and the colonies 301 gareth austin 11. Capitalism at war 348 mark harrison 12. Modern capitalism: enthusiasts, opponents, and reformers 384 jeffry frieden and ronald rogowski 13. Labor movements 426 michael huberman 14. Private welfare and the welfare state 464 peter h. lindert 15. Capitalism and human welfare 501 leandro prados de la escosura 16. The future of capitalism 530 larry neal and jeffrey g. williamson Index 547 vi

7 Figures 2.1. The geographical distribution of the world s manufacturing output page The performance of world agriculture, (1938=100) Agricultural prices (1950=100) Current account positions (five-year averages) Capital flow reversals (aggregated capital flows) Current account balances Daily closing values of the Dow Jones Industrial Average Government purchases, percent of GDP: Sweden and the United Kingdom, Poor-relief expenditures as a share of national product, Europe and United 475 States, Public and private assistance to the needy in the United States, Public social spending as a share of GDP, OECD countries Tax collection costs as a percentage of the amounts collected by central 487 government, United States and United Kingdom, 1787/ Poverty shares among the old and the young, United States Bias toward the elderly in public social spending, Social spending vs. poverty rate, people of working age, c Sen-Welfare (inequality-adjusted real GDP per head) across world regions World human development, World human development and GDP per head growth rates, (%) Relative human development across developing regions, (OECD=1) Human development (vertical axis) and social transfers (% GDP) (horizontal 513 axis) for a group of OECD countries, Human development (vertical axis) and democratization (horizontal axis) in 515 the world, Life expectancy Kakwani indices in world regions, (OECD = 1) Education Kakwani indices in world regions, (OECD = 1) Breakdown of human development growth in the world, (%) Breakdown of human development growth in OECD, (%) Breakdown of human development growth in the Rest, (%) 520 vii

8 Tables 3.1. Workforce page Acreage Change in total factor productivity before World War II World foreign direct investment as a percentage of world 170 output (%) 6.2. World s largest host economies measured by stock of inward 173 foreign direct investment, 1914, 1929, 1980, FDI inward stock as a percentage of GDP Military spending, 1870 to 1979, percent of GDP, in four countries World and regional union density rates Theoretical influences on social insurance and social assistance Church and private charity for the poor, as shares of national 473 product in the eighteenth and nineteenth centuries Recipients philanthropy revenues, United States 1927 and Private and public social expenditures as shares of GDP, Relative risks of poverty, by age of individuals in the OECD, mid 1970s to mid 2000s 491 viii

9 Contributors R OBERT C. ALLEN Professor of Economic History, University of Oxford G ARETH A USTIN Professor of International History, Graduate Institute of International and Development Studies, Geneva K RISTINE B RULAND Professor of Economic History, University of Oslo GIOVANNI F EDERICO Professor of Economic History, Department of Economics and Management, University of Pisa J EFFRY F RIEDEN Stanfield Professor of International Peace, Department of Government, Harvard University R ON H ARRIS Professor of Legal History and Dean, Faculty of Law, Tel-Aviv University M ARK H ARRISON Professor, Department of Economics, University of Warwick, and research fellow at the Hoover Institution, Stanford University M ICHAEL H UBERMAN Professor of Economic History, Faculty of Economics and Social Sciences (SES), Université de Genève H AROLD J AMES Professor of History and International Affairs, Princeton University G EOFFREY J ONES Isidor Straus Professor of Business History, Harvard Business School P ETER H. LINDERT Distinguished Research Professor of Economics, University of California, Davis R ANALD M ICHIE Professor, Department of History, Durham University R ANDALL M ORCK Stephen A. Jarislowsky Distinguished Chair in Finance and University Professor, Alberta School of Business D AVID C. MOWERY William A. & Betty H. Hasler Chair in New Enterprise Development, Haas School of Business, University of Berkeley L ARRY N EAL Professor Emeritus of Economics, University of Illnois, Urbana-Champaign and London School of Economics K EVIN H. O ROURKE Chichele Professor of Economic History, All Souls College, University of Oxford ix

10 List of contributors L EANDRO P RADOS DE L A E SCOSURA, Professor at the Economic History and Institutions Department, Carlos III University of Madrid RONALD R OGOWSKI Professor of Political Science, University of California, Los Angeles J EFFREY G. WILLIAMSON Laird Bell Professor of Economics, Emeritus, Harvard University, and Honorary Fellow, Department of Economics, University of Wisconsin- Madison B ERNARD Y EUNG Stephen Riady Distinguished Professor and Dean, National University of Singapore Business School x