The East Remains Dominant

1. By: John Chang Anand Pattabiraman Daniel Riveros The East Remains Dominant Cerulean

2. 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

3. 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.

4. 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

5. 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

6. 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

7. Europe was at a lost • Asians supposedly preferred bullion because of hording • Asians collected taxes, which forced for more commercial economy • Asians resorted to global arbitrage (foreign exchange to profit from unequal prices) • Exchanged silver for gold, not hoarding but profiting • Used bullion to boost circulation and production

8. 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.

9. 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.

10. 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.

11. 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.

12. 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

13. 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.

14. 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.

15. 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

16. 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

17. 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 http://homepage.ntlworld.com/neil_james.bruce/Honda-copy.jpg

18. 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:Location_TokyoJapan.jpg

19. 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

20. Rapid Commercialization • Peasants’ knowledge enhanced through agricultural treatises • More area for irrigated crops • Rising productivity levels • National currency http://www.pierre-marteau.com/images/coins/japan-koban-1714.jpg

21. Tokugawa Japan http://www.wwnorton.com/college/history/worlds/images/map4_6.jpg

22. 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

23. Japanese Isolationism • Sakoku – ‘closed country’ in 1639 • Eurocentric scholars believe Japan withdrew from international trade • Confirms oriental despotism and economic stagnancy

24. 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, South-East Asia

25. 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