Economic historians continue to debate the causes of the great divergence of economic fortunes which has characterized the last half millennium. In this debate, the role of colonialism and specifically the British Empire has a crucial role to play. If geography, climate, and disease provide a sufficient explanation for the widening of global inequalities, then the policies and institutions exported by British imperialism were of marginal importance. However, if the key to economic success lies in the adoption of legal, financial, and political institutions favorable to technical innovation and capital accumulation, then it matters a great deal that between around 1880 and 1940 a quarter of the world was under British rule.
Editor’s Note: I found this a fascinating read – a nice combination of economic and historical analysis but not at all dry and boring…
Editor’s Note: see a related EBF article by Jean-Jacques Lambin, “The benefits of globalisation” at
Niall Ferguson
Source: STERNbusiness (NYU)
Subjects: Economics, History
