Part-IV: Long Answer Type Questions
0.1 What was the economic impact of colonisation?
In about 60 words.
Answers
Answer:
The economic impact of colonialism
Daron Acemoğlu, James Robinson 30 January 2017
The immense economic inequality we observe in the world today is the path-dependent outcome of a multitude of historical processes, one of the most important of which has been European colonialism. This column, taken from a recent Vox eBook, discusses how colonialism has shaped modern inequality in several fundamental, but heterogeneous, ways.
New Book: The Long Economic and Political Shadow of History
Stelios Michalopoulos, Elias Papaioannou
The long-run effects of the ‘Scramble for Africa’
Stelios Michalopoulos, Elias Papaioannou
British and French educational legacies in Africa
The immense economic inequality we observe in the world today didn’t happen overnight, or even in the past century. It is the path-dependent outcome of a multitude of historical processes, one of the most important of which has been European colonialism. Retracing our steps 500 years, or back to the verge of this colonial project, we see little inequality and small differences between poor and rich countries (perhaps a factor of four). Now the differences are a factor of more than 40, if we compare the richest to the poorest countries in the world.
In our research with Simon Johnson we have shown that colonialism has shaped modern inequality in several fundamental, but heterogeneous, ways. In Europe the discovery of the Americas and the emergence of a mass colonial project, first in the Americas, and then, subsequently, in Asia and Africa, potentially helped to spur institutional and economic development, thus setting in motion some of the prerequisites for what was to become the industrial revolution (Acemoglu et al. 2005). But the way this worked was conditional on institutional differences within Europe. In places like Britain, where an early struggle against the monarchy had given parliament and society the upper hand, the discovery of the Americas led to the further empowerment of mercantile and industrial groups, who were able to benefit from the new economic opportunities that the Americas, and soon Asia, presented and to push for improved political and economic institutions. The consequence was economic growth. In other places, such as Spain, where the initial political institutions and balance of power were different, the outcome was different. The monarchy dominated society, trade and economic opportunities, and in consequence, political institutions became weaker and the economy declined. As Marx and Engels put it in the Communist Manifesto,
“The discovery of America, the rounding of the Cape, opened up fresh ground for the rising bourgeoisie.