1 - Driving forces of economic growth: what can we learn from history?

Summary

Introduction

In defining the scope of this paper, we had to answer several questions. First, if one necessarily deals with a limited period in the long history of mankind from the hunting-gathering tribes to the industrial societies of 1980, what should the reference period be? Second, in reflecting on economic growth, what classes and groups of societies, in the wide range of units among which mankind is divided, should we emphasize? Third, while we cannot pursue quantitative analysis here, we should be clear as to the quantitative and related criteria of economic growth. Different criteria will result in focusing our attention on different aspects of economic growth, and on different groups of driving forces. Finally, how do we deal with “driving forces”, a concept for which it is difficult to establish ex ante empirically observable counterparts?

However carefully considered, the answers to these questions were bound to leave us with a theme so wide as to warrant only selected reflections, rather than tested and documented conclusions. We reflect on the historical record of the last two centuries, viewing it as a distinct epoch of economic growth. Yet the period is too short, in excluding important antecedents in the earlier history, particularly of what are now economically developed countries; and too long, in encompassing changes in growth trends that cannot be adequately noted here.