Industrialization of China - Assignment Example

Download file to see previous pages The pricing system, common law and property rights in Britain and Holland were well defined; in China, too the private landholding property rights including leasehold and freehold rights became the basis to give the economy a boost.
In fact, China experienced a revolution in agriculture; the geographical expansion of China mainland was possible due to the peasants who were willing to move to new places as China took hold of further land. In return, the state-supported such peasants with financial and material aid. The state’s main revenue was generated through a tax imposed on peasants. It also became the single most source of employment in China. The economy thrived due to agricultural dominance. Britain too had agricultural revolution but it led to making agriculture less labor-intensive, unlike China.
A combination of all resources, material, knowledge, and institution, was in the possession of Britain, which helped it grow before anyone else. In the west, science and modern technology interacted with social structure, which was the main cause of rapid industrialization. China remained an agricultural country with 80% of its population being peasants while Britain experienced a scientific, industrial, and agricultural revolution.
The economy in China was dependant on agriculture. Four times the tax rate was the aggregate surplus of the agricultural sector and this money was used in other sectors. Initially, the mints produced coins but due to the non-availability of metals, cloth and paper were used as currency. China then imported foreign silver and one-third of the total output of silver from the new world was imported by China. The market became saturated with foreign silver, which led to the market revolution and devaluation of the currency. The capital was abundantly available in Britain as the interest rate was just 5% but in China, the interest rate was as high as 30%. ...Download file to see next pages Read More