World Economic Performance

World Economic Performance

Past, Present and Future

Edited by D. S.P. Rao and Bart van Ark

World economic performance over the last 50 years has been spectacular. The postwar period has witnessed impressive growth rates in Western Europe and Japan, and in recent times China and India. This new book discusses these issues and tackles topical questions such as; what are the socio-economic and institutional factors that have contributed to this impressive performance? Will China and India continue to grow at the same rate over the next two decades? What are the prospects for Japan, the US and other advanced economies? The book brings together contributions by eminent scholars including the late Angus Maddison, Professors Justin Lin, Bob Gordon, Ross Garnaut, Bart van Ark and others to provide answers to these fascinating questions. The chapters analyse the economic performance of selected countries including China, India, Japan, Indonesia and the US, as well as Western Europe, Latin America and developing countries as a group. The time period of the study is from 1850 to the present and includes forecasts to 2030.

Chapter 2: Six Transformations in China: 960-2030

Edited by D. S.P. Rao and Bart van Ark

Subjects: development studies, development economics, economics and finance, development economics, economic psychology, international economics


In world perspective China’s performance has been exceptional. In the thirteenth century, it was the world’s leading economy in terms of per capita income. It outperformed Europe in levels of technology, the intensity with which it used its natural resources, and capacity for administering a huge territorial empire. By 1500, western Europe had overtaken China in per capita real income, technological and scientific capacity. From the 1840s to the middle of the twentieth century, China’s performance actually declined in a world where economic progress elsewhere was very substantial. In the past 60 years, China has been resurrected in a catch-up process which seems likely to continue in the next quarter century. By 2030 Chinese per capita income will be well above the world average. In terms of GDP, it will very probably have overtaken the USA as the world’s biggest economy around 2015 (see Figure 2.1 and Tables 2.1, 2.2 and 2.3). 2.1.1 Six Transformations One can identify six major phases in economic performance of China in the past millennium. 1) The first transformation saw intensive and extensive growth in the Sung dynasty 960-1280, when per capita income rose by a third and population almost doubled. There was a major shift in the centre of gravity of the economy. In the eighth century three-quarters of the population lived in North China, where the main crops were wheat and millet. By the end of the thirteenth, three-quarters lived south of the Yangtse. This area had been swampy and lightly-settled, but with irrigation and early ripening seeds, it provided an ideal opportunity for massive development of rice cultivation.

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