Faculty of Economics and Business

BACHELOR IN ECONOMICS FIRST YEAR Course

Economic History

Code

802342

Module

Basic Formation

Area

Economic History and Institutions

Nature

Basic 6

Attendance

3,6

Credits

Non Attendance

2,4

Year

1

Semester

1

COORDINATION DEPARTMENT Historia e Instituciones Económicas II

COORDINATOR AND CONTACT Emilio Pérez Romero; [email protected]

SYNOPSIS BRIEF DESCRIPTION This course deals with the long term development of the world economy. It examines it in a comparative perspective, focusing on the interplay between economic growth and institutional, social, and technological change.

PRE-REQUISITES None.

OBJETIVES To strengthen the undergraduate student’s capacity of analysis of the world economy and cultural background by teaching him/her to approach current economic issues with a historical (long run) perspective.

COMPETENCES General: CG1, CG2, GC3, CG4.

Faculty of Economics and Business

Transversal: CT1, CT2, CT3. Specific: CE1, CE6.

LEARNING METHODOLOGY A mixed methodology of teaching and learning will be used in all educational activities with the aim of encouraging students to develop a collaborative and cooperative attitude in the pursuit of knowledge.

TOPICS COVERED (Syllabus) 1. Economic Growth in the Long Run Why history matters. Identifying the big issues in economic development. The long term perspective. 2. Economic History and Economic Development Key concepts, indicators and theories of economic growth The rise of the West vs. the rise of the Rest 3. The European Miracle The dynamics of agrarian economies Inherited ideas and institutions European Expansion 4. The First Industrial Revolution and the Transformation of the English Economy Major and interrelated changes in politics, population, agriculture, industry, trade and finance c. 1760-c. 1850 Innovation and economic growth Prerequisites and determinants of industrialization 5. The Spread of Industrialization: Early Comers The second industrial revolution Main characteristics of the industrialization of France, Germany, and the United States 6. The Spread of Industrialization: Latecomers Main characteristics of the industrialization of the Scandinavian countries, Italy, Russia, and Japan 7. The International Economy Free trade, migration, capital export and the Gold Standard The first globalization? 8.The Economic Impact of the First World War Short and long term effects. 9.The Great Depression The US economy Financial and industrial dimensions of the crisis Responses to the crisis 10. The Making of the New International Order The Second World War: short and long term effects

Faculty of Economics and Business

Bretton Woods The Marshall Plan Truman’s doctrine 11. The Golden Age of Capitalism Determinants Foundations of the welfare state The German and Japanese miracles The limits of prosperity 12. The Rise and Fall of Socialism The USSR The spread of socialism Why and how it failed 13. The Search for a New Order The industrial crisis of the 1970s The third industrial revolution The triumph of the market The rise of the rest

TEACHING ACTIVITIES DISTRIBUTION Theoretical lessons

% of Total Credits

30%

Practical lessons

% of Total Credits

15%

Other Activities

% of Total Credits

55%

Personalized & Group Tutoring: 10%, Assessment Activities: 5%,Individual & Group Homework Assignments: 10%, Hours to Study: 30%

ASSESSMENT Exams

% Share of Final Grade

50 %

% Share of Final Grade

30%

Final Exam 50%

Other Activities Cases & Quizzes 30%

Other activities

& Share of Final Grade 20%

Active participation in the classroom: 10% Individual oral presentations: 10%

EVALUATION CRITERIA

Faculty of Economics and Business

Fail (0-4.9), pass (5-10) “Convocatoria ordinaria”: Not presented, to the last week of November (included) “Convocatoria extraordinaria”: Not presented if the student does not attend the final exam

Faculty of Economics and Business

TIMETABLE CONTENTS

HOME WORK & SEMINARS

Why History Matters Identifying the big issues in economic development The long term perspective

Readings: “Climbing back”, The Economist (Jan. 19, 2006)

Economic History and Economic Development Key concepts, indicators and theories of economic growth The rise of the West vs. the rise of the Rest

The European Miracle The dynamics of agrarian economies Inherited ideas and institutions European Expansion

Readings: Cameron & Neal, chapter 1 Practical exercise: Dealing with historical statistics (Maddison 1000-present) Internet search: HDI Cameron & Neal, chapters 3, 5 and 6 Jones, preface to the second edition Practical exercise: The price revolution and the rise of the Dutch economy Internet search: Early modern empires

The First Industrial Revolution and the Transformation of the English Economy Major and interrelated changes in politics, population, agriculture, industry, trade and finance c. 1760-c. 1850 Innovation and economic growth Prerequisites and determinants of industrialization The Spread of Industrialization: Early Comers The second industrial revolution Main characteristics of the industrialization of France, Germany, and the United States

The Spread of Industrialization: Latecomers Main characteristics of the industrialization of the Scandinavian countries, Italy, Russia, and Japan

Cameron & Neal, chapters 7 and 8 Mokyr, chapter 1 Floud & McCloskey, volume 1 Engels, introduction Practical exercise: England’s demographic transition Internet search: British Empire Cameron & Neal, chapter 9 Practical exercise: E.-J. Sieyès Internet search: A. Hamilton, F. List, C. SaintSimon Cameron & Neal, chapter 10 th

Practical exercise: 19 century literacy rates

Faculty of Economics and Business

The International Economy Free trade, migration, capital export and the Gold Standard The first globalization?

Cameron & Neal, chapter 11 Kenwood & Lougheed, chapters

The Economic Impact of the First World War Short and long term effects.

Aldcroft, chapter 1 Keynes

The Great Depression The US economy Financial and industrial dimensions of the crisis Responses to the crisis BBC documentary

The Making of the New International Order The Second World War: short and long term effects Bretton Woods The Marshall Plan Truman’s doctrine

Practical exercise: First vs. second globalization (commodity trade and capital flows) Internet search: US immigration

Practical exercise: Alternatives to the Versailles Treaty Internet search: Human and financial cost of the First World War Cameron & Neal, chapter 14 Aldcroft, chapters 2 and 3 Chandler & Tedlow, case 22 Practical exercise: The 1930s crisis vs. the current crisis Internet search: Volkswagen Cameron & Neal, chapter 15 Practical exercises: Marshall Plan, H.S. Truman Internet search: Morganthau Plan

The Golden Age of Capitalism Determinants Foundations of the welfare state The German and Japanese miracles The limits of prosperity

Aldcroft, chapter 5

The Rise and Fall of Socialism The USSR The spread of socialism Why and how it failed

Aldcroft, chapter 6

The Search for a New Order The industrial crisis of the 1970s The third industrial revolution The triumph of the market The rise of the rest

Aldcroft, chapters 7-10

Practical exercise: Technical innovation and productivity Internet search: US military bases and expenditure

Practical exercise: Growth rates and factors in state-planned economies Internet search: Josef Stalin, Deng Xiao Ping

Practical exercise: Emerging countries Internet search: Washington Consensus

Faculty of Economics and Business

RESOURCES HANDBOOK CAMERON, Rondo & NEAL, Larry (2003): A Concise Economic History of the World: From Paleolithic Times to the Present, Oxford-New York, Oxford Univesity Press.

COMPLEMENTARY BIBLIOGRAPHY ALDCROFT, Derek H. & NEAL, Larry (2001): The European Economy 1914-2000, LondonNew York, Routledge. ALLEN, Robert C. (2009): The British Industrial Revolution in Global Perspective, CambridgeNew York, Cambridge University Press. BULMER-THOMAS, Victor (2003): The Economic History of Latin America since Independence, Cambridge-New York, Cambridge University Press. CLARK, Gregory (2007): A Farewell to Alms: A Brief Economic History of the World, Princeton, Princeton University Press. EICHENGREEN, Barry J. (2007): The European Economy since 1945: Coordinated Capitalism and Beyond, Princeton, Princeton University Press. FLOUD, Roderick & McCLOSKEY, Donald (1994): The Economic History of Britain since 1700, volume 1 (1700-1860), Cambridge, Cambridge University Press. HUGHES, Jonathan R.T. & CAIN, Louis P. (2003): American Economic History, Boston, Addison Wesley. JONES, Eric L. (2003): The European Miracle: Environments, Economies, and Geopolitics in the History of Europe and Asia, Cambridge-New York, Cambridge University Press. KENWOOD, A.G. & LOUGHEED, A.L. (1999): The Growth of the International Economy 18202000: An Introductory Text, London-New York, Routledge. LIVI-BACCI, Massimo (2001): A Concise History of World Population, Malden, Mass., Blackwell. MADDISON, Angus (2007): Chinese Economic Performance in the Long Run, Paris, Development Centre of the OECD. MADDISON, Angus (2006): The World Economy, Paris, Development Centre of the OECD. MOKYR, Joel (1990): The Lever of Riches: Technological Creativity and Economic Progress, Oxford-New York, Oxford University Press. MOKYR, Joel (2002): The Gifts of Athena: Historical Origins of the Knowledge Economy, Princeton, Princeton University Press. NORTH, Douglas & THOMAS, Robert (1973): The Rise of the Western World: A New Economic History, Cambridge, Cambridge University Press. POLLARD, Sidney (1982): Peaceful Conquest: The Industrialization of Europe 1760-1970, Oxford-New York, Oxford University Press. VRIES, Jan de (2008) The Industrious Revolution: Consumer Behaviour and the Household Economy, 1650 to the Present, Cambridge-New York, Cambridge University Press.

Faculty of Economics and Business

OTHER RESOURCES Historical statistics: FLORA, Peter (1983), State, Economy, and Society in Western Europe, 1815-1975. A Data Handbook, London, MacMillan. MADDISON, Angus (2001), The World Economy. A Millennial Perspective, Paris, OECD (www.TheWorldEconomy.org). MITCHELL, B.R. (1998-2003), International Historical Statistics: Europe; International Historical Statistics: Africa, Asia and Oceania; International Historical Statistics: The Americas, London,, Macmillan. US BUREAU OF THE CENSUS (1976), Historical Statistics of the United States. Colonial Times to 1976, Washington, US Department of Commerce.

Websites: There is a number of useful yet changing websites, such as www.bbc.net.uk/history, www.historiasiglo20.org, www.spartacus.schoolnet.co.uk or www.yale.edu/lawweb/avalon.