By: John Chang
Anand Pattabiraman
Daniel Riveros
Cerulean
The East over the West 12OO – 18OO
East stayed ahead of West up until late
19th century


Economically more advanced




1750 – East had 220% more income
1830 – East had 124% more income
1860 – East had35% more income
1870 – Europe finally caught up
Strong Economic Proof

1820 – China compromised 29% of the
world’s GDP,
 Can be attributed to overpopulation.

1750 – When compared to 1960 US
dollars, China had equal
per
capita income to that
of leaders in
Europe.
East’s GDP
China compromised 33% of the world’s
manufacturing


Comparing China to Britain





1750 – China had 1600% output than that of
Britain
1800 – 670%
1830 -215%
1860 – Britain’s output finally equal China’s
In 1750 West contributed 23% while East
had 77%

Only after 1850 did the West surpass the East
West surpasses the East
West GNP overtakes East in 1870


Ottoman Turkish never fell behind the
West before 19th century
○
Standards of living must also be taking into
account


Japanese generally ate healthier than British
China was more advanced water wise than
Europe
Eurocentric argument

Europe usually took bullion exports from
other parts of the world

Andre Gunder Frank describes how the
Americas and Japan produced silver, and Africa
exported gold. However, Europe hardly
produced anything
Europe was at a lost

Asians supposedly preferred bullion
because of hording
1. Asians collected taxes, which forced for more
commercial economy
2. Asians resorted to global arbitrage (foreign
exchange to profit from unequal prices)
3. Exchanged silver for gold, not hoarding but
profiting
4. Used bullion to boost circulation and production
India and Oriental Despotism

Eurocentric historians believe that India
was a classical case of Oriental
Despotism due to several beliefs:
 Mughal anti capitalism
 Mughal state was “all grasping”
 No source of Indian credit
 Rich merchants inexistent
 Indian commerce was insignificant prior to British
imperialism
 India was isolated from International Trade
 India could not obtain powerful productive power.
The Mughal Empire crushed all
capitalist activity.

Mughal Empire was either passive or
promoted capitalism demonstrated by:
 Royal navy aiding Gujurati merchants.
 Exchange of peace-keeping letters between
Mughal rulers and neighboring empires.
The Mughal State was “all
grasping”
Central state devolved power to the
local authorities.
 Trades and prices not administered by
Central State.
 Lack of monopolies in the economy.

There could not be sources of
Credit in the economy of India.
Had well developed financial institutions.
 Ahmadabad merchants recorded all
payments and debts on paper.
 Sarrafs engaged in deposit banking with
merchants.

Rich merchants could not exist in
India.

Several extremely rich merchants did
exist:
 Abdul Ghafur – English East India Company
 Virji Vora – Dutch East India Company
Indian trade was insignificant prior to
British Imperialism.
India was viewed as exotic and only
cared for luxury trade – spices and
textiles.
 Town merchants actually controlled
many of the peddlers.
 Many long-distance traders who
controlled Indian Ocean trade.

India was isolated from International
Trade.
India was oriented towards an export
economy rather than import.
 India focused on Indian Ocean and
internal commerce.
 Railways carried 2,500 metric-ton miles.

India could not have impressive
levels of productive power.

Wootz Steel Industry
produced Damascus
swords.

Cotton and Textile
Industry controlled by
India until 18th
century
Tokugawa Japan (1603 – 1868)

Often assumed as:
 Backward and stagnant
 Oriental despotism
 Feudal economy

However, Japanese economic growth
rate in Meiji Period exceeded almost all
European economies.
 Per capita income growth during Tokugawa
Meiji Period ended Feudalism?

Merely an endpoint of
policies to undermine
strongholds of
feudalism
 Daimyo (aristocracy)
 Samurai (military
vassals)

Policies began in first
half of 1600s
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Daimyo

Forced to live in Edo
 Reduced local
autonomy

Accumulated high
personal debt
 Land taken by Meiji
state to get rid of debt
http://en.wikipedia.org/wiki/Image:Loc
ation_TokyoJapan.jpg
Samurai

Forced to live in castle towns
 Growing urban numbers led to advances in
agriculture
Markets took over subsistence cropping
 Samurai separation promoted incentive
for peasants to produce more
 Eventually led to commercialization

Rapid Commercialization
Peasants’ knowledge enhanced through
agricultural treatises
 More area for irrigated
crops
 Rising productivity levels
 National currency

http://www.pierremarteau.com/images/coins/japankoban-1714.jpg
Tokugawa Japan
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norton.com/coll
ege/history/wor
lds/images/ma
p4_6.jpg
Economic Significance
1630 - First credit institutions formed in
Osaka
 1670 – Group of Ten responsible for money
market
 Similar to a central bank

 Held final reserves of banking system
 Deposits, advances, bill discounts, insurance

Advancement of industry
 Fishing, textiles, paper-making, metalworking
Japanese Isolationism
Sakoku – ‘closed country’ in 1639
 Eurocentric scholars believe Japan withdrew
from international trade

 Confirms oriental despotism and economic
stagnancy
Japanese Isolationism
Eurocentric scholars misunderstood
sakoku
 Policy used to regulate foreign trade and
get rid of foreign Catholic ideas
 Japan continued trade with China,
Korea, Dutch, Siam, and later, SouthEast Asia

Eurocentric vs. Hobson
•
Commodore Perry opened up a closed
Japan
– Japan was already global
•
Meiji Japan only succeeded because it
imitated the West
– Industrialization prompted to counter China’s
dominance
•
Tokugawa Japan was regressive oriental
despotism
– Groundwork for Meiji industrialization laid during
Tokugawa Period