Before and Beyond Divergence: The Politics of Economic Change in China and Europe - Hardcover

With its sustained, rigorous economic analysis and frequently compressed exposition of complex arguments, this taut monograph is a formidable but rewarding read. Rosenthal and Wong boldly tackle one of the most challenging questions in comparative economic history: why did sustained economic growth arise in Europe rather than China? The authors systematically demolish conventional narratives touting the superiority of European political, social, and economic institutions over their Chinese counterparts. They find convincing explanations for Sino-Western divergence in contrasting processes of long-term political development originating centuries before Europe's industrial revolution. Over the course of a millennium, the huge size, prosperity, and relative stability of China's empire conferred significant economic advantages that long eluded Europe's fragmented, bellicose polities. Rosenthal and Wong nonetheless conclude that the costly military competitions that habitually distorted European history had unintended consequences. By impelling urbanization and a demand for capital-using technologies, Europe's constant wars rather than China's long peace laid the groundwork for modern economic growth. -- R. P. Gardella Choice 20110801

China has reemerged as a powerhouse in the global economy, reviving a classic question in economic history: why did sustained economic growth arise in Europe rather than in China? Many favor cultural and environmental explanations of the nineteenth-century economic divergence between Europe and the rest of the world. This book, the product of over twenty years of research, takes a sharply different tack. It argues that political differences which crystallized well before 1800 were responsible both for China's early and more recent prosperity and for Europe's difficulties after the fall of the Roman Empire and during early industrialization. Rosenthal and Wong show that relative prices matter to how economies evolve; institutions can have a large effect on relative prices; and the spatial scale of polities can affect the choices of institutions in the long run. Their historical perspective on institutional change has surprising implications for understanding modern transformations in China and Europe and for future expectations. It also yields insights in comparative economic history, essential to any larger social science account of modern world history.