Episode 104: The History of the World Economy and Growth

In 'The Great Divergence,' Kenneth Pomeranz challenges the traditional Eurocentric view of history by arguing that the Industrial Revolution in Europe was not due to inherent superiority, but rather to specific historical circumstances. Pomeranz identifies two critical factors: Europe's access to cheap energy from coal deposits and its exploitation of resources from the New World. These factors allowed Europe to overcome ecological constraints and fuel its industrial growth, while China, despite similar economic and ecological conditions around 1800, did not have these advantages. The book emphasizes the importance of global trade, the environmental costs of industrialization, and the implications of these historical processes for understanding modern global inequality.