Australia's Bankrupt Chinese Furniture Manufacturers, 1880–1930

The proprietors of almost 100 Chinese furniture factories in Australia went bankrupt during the late nineteenth and early twentieth centuries. With a substantial stake in furniture production for decades following the gold rushes of the 1850s and 1860s, Chinese furniture factory operators were vilified and legislated against in a push for ‘White‐Australian’ industrial advancement. Historians have consistently concentrated on such campaigns when explaining Chinese‐Australian business failures of this period. Yet informed principally by their bankruptcy court testimony, this paper contends that Chinese furniture manufacturers went bankrupt largely because of economic difficulties and, thus, failures are not sufficiently explained by ‘White Australia’.     

Intoxicants and the invention of ‘consumption’

In 1600 the word ‘consumption’ was a term of medical pathology describing the ‘wasting, petrification of things’. By 1700 it was also a term of economic discourse: ‘In commodities, the value rises as its quantity is less and vent greater, which depends upon it being preferred in its consumption’. The article traces the emergence of this key category of economic analysis to debates over the economy in the 1620s and subsequent disputes over the excise tax, showing how ‘consumption’ was an early term in the developing lexicon of political economy. In so doing the article demonstrates the important role of ‘intoxicants’—that is, addictive and intoxicating commodities like alcohols and tobaccos—in shaping these early meanings and uses of ‘consumption’. It outlines the discursive importance of intoxicants, both as the foci for discussions of ‘superfluous’ and ‘necessary’ consumption and the target of legislation on consumption. It argues that while these discussions had an ideological dimension, or dimensions, they were also responses to material increases in the volume and diversity of intoxicants in early seventeenth-century England. By way of conclusion the article suggests the significance of the Low Countries as a point of reference for English writers, as well as a more capacious and semantically sensitive approach to changes in early modern consumption practices.     

The political economy of income distribution in South Korea: The impact of the state's industrialization policies

A number of previous studies of economic growth and income distribution in South Korea, based largely on 1960s data, concluded that South Korea was an exception to Kuznets' ‘inverse U-pattern’ of income inequality. Also, it was regarded as an exception to the usual negative consequences predicted by dependency theory for an economy so dependent on foreign capital and world markets. This author presents more recent data — for the 1970s and early 1980s — in order to support his claim that the trend toward income equality that appeared in the 1960s was reversed in the 1970s. The author develops a thesis that stresses the role of the state in shaping the Korean political economy. He argues that it has been the strong South Korean developmentalist state in firm control of both domestic and foreign capital and its export-oriented industrialization policies that have been the principal determinant of the pattern of income distribution. He contests the usual explanation related to the level of economic development or external dependency per se.     

Of markets,might and mullahs: a case for equity,pluralism and tolerance in development

This paper tries to confront the ‘puzzlement’ of the development profession regarding the ‘best’ alternative strategies aimed at increasing employment, reducing poverty and promoting equity at the same time as fostering economic growth — and the ‘advocacy’ role that should or should not be played by that profession. The author argues that the issue lies in achieving a workable ‘meaning’ of development and then moving on to the moral ‘questions’ of value judgments and to the specific ‘problems’ that can be dealt with by science and social science. He suggests that a possible meaning of development is ‘to create more options for more people’ — ‘to achieve that the greatest number of people have the greatest number of options.’ He discusses the need for improving ‘life chances’ and considers the development policies which may or may not assist in this process. He tries to tie together conceptually the ideas of power and social change, consensus and conflict. Also in this context, the roles of participation, organization and mobilization are explored, especially their impact on different political systems. The analysis concludes with a plea for social, cultural and political pluralism — and thus, a commitment to tolerance. The author argues that these goals should be addressed by the development community without the hesitation sometimes attached to ‘protection of expertise’.     

Serfdom and social capital in Bohemia and Russia1

The ‘horizontal’ social capital generated by networks and communities is widely regarded as inherently antagonistic to ‘vertical’ hierarchies such as serfdom. This article examines this view using evidence from pre‐Emancipation Bohemia and Russia. It finds that serf communes generated a substantial ‘social capital’ of shared norms, common information, and collective sanctions. But communal social capital was manipulated by village elites who collaborated with overlords in taxation, land regulation, and demographic control. This benefited communal oligarchies, but harmed ordinary serfs and the wider economy. Horizontal social capital and vertical hierarchies, the article demonstrates, can as easily collude as conflict.     

Non-financial Determinants of Retirement: A Literature Review

Retirement is often concentrated at specific ages—in particular the ‘normal retirement age’ and an ‘early retirement age’. Financial incentives cannot fully explain this. Moreover, the participation effect of a higher normal retirement age importantly exceeds the encompassing income effect. Based on a literature survey, we conclude that social norms, default options, and reference-dependent utility are likely explanations for the individual propensity to retire at specific retirement ages. Further empirical research on non-financial determinants of retirement is needed to fully understand individual retirement behavior.     

Implications of the effective revaluation of reserve asset gold: The case for a gold account for development

International agreement was reached in the early 1970s that the future creation of international reserves would be largely via SDR allocations, to be distributed to individual countries in proportion to their quotas in the IMF. In this manner, the international monetary system would play a ‘neutral’ role in the creation and distribution of international reserves. It has become increasingly apparent in recent years, however, that the international monetary system has been far from neutral in its distribution of international liquidity. The de facto revaluation of reserve asset gold has led to a massive creation of international reserves — nearly $500 billion by the end of 1979 — which has served to benefit almost exclusively the major gold-holding countries, all among the wealthiest of the industrialized nations.Unlike the major gold-holding countries, which throughout the Bretton Woods era converted two-thirds of their foreign exchange holdings into gold, the large majority of developing countries acted on the basis of the United States pledge that the dollar was ‘as good as gold’. As a result, the quantitative analysis presented in this paper shows that developing countries have foregone reserve holdings in excess of $100 billion. To partially redress the inequitable distribution of international reserves which has arisen from the de facto revaluation of reserve asset gold — and at the same time to promote a significant transfer of resources to developing countries — this paper proposes the establishment of a ‘Gold Account for Development’ based on official gold holdings, outlines the various forms which such an account might take, and discusses the political acceptability of the proposals.     

Building an alternative economic network? Consumer cooperation in Scotland from the 1870s to the 1960s†

There is growing interest in the ways in which, and the values according to which, economic activity is undertaken. For instance, mutual ownership has been identified as one means of helping to ‘redeem’ capitalism. This article engages with such issues by examining aspects of the behaviour of consumer cooperative societies in Scotland from the 1870s to the 1960s. It starts by discussing whether cooperatives represent a means of conceptualizing and undertaking economic activity that provides an alternative to the paradigm of investor‐led (neo)liberal capitalism. From this, and an outline history of consumer cooperatives in Scotland, it identifies two variables—dividend on purchases and funds for education—as proxies for the values underpinning cooperatives’ economic behaviour. Analysis of these variables indicates the existence of distinct cultures of cooperation, notably in the Glasgow and Edinburgh areas. The article concludes by offering two ‘lessons from history’ for those interested in alternative economic networks. The first is that cooperation can, and has, conceptualized and sustained an alternative to the dominant (neo)liberal economic paradigm. The second is that the scaling‐up of such voluntaristic economic thought and behaviour is unlikely to present a macro‐level challenge to it.     

Basic needs and human rights

This paper discusses the relationship between basic needs and human rights and addresses such questions as: is the satisfaction of basic needs a human right? or, are human rights themselves basic needs? are there basic needs other than material needs which embrace human rights? do the respect for rights and the satisfaction of needs go together or car there be conflict? The paper attempts to distinguish between a variety of ‘rights’ — positive, negative; social, economic, political, civil — and to clarify the best means by which to achieve maximum fulfilment of these ‘rights’.     

Real inequality in the early modern Low Countries: the city of ’s‐Hertogenbosch, 1500–1660

This article studies the welfare effects of economic growth in the early modern Low Countries. It applies the recently developed concept of ‘real inequality’ to a case study of sixteenth‐ and seventeenth‐century ’s‐Hertogenbosch in the Southern Netherlands and demonstrates, by incorporating relative price movements, that specific (and in this case stagnant) nominal income inequality trajectories may disguise underlying shifts in real inequality that are influenced by socially biased relative prices. The analysis is then extended to include changes in demography and household size, which reveals a second important limitation in the study of long‐term economic inequality. In contrast to the stagnation and eventual decline in nominal inequality seen in ’s‐Hertogenbosch during the long sixteenth century (1500–1650), this broadened concept of ‘augmented’ real inequality in fact suggests the occurrence of a significant upturn during the first half of the sixteenth century. Furthermore, while nominal inequality had decreased, real inequality appears to have been higher by the middle of the seventeenth century than it had been around 1500. The study of global and/or long‐term inequality, in particular, would benefit greatly from a proper social, economic, and historical contextualization of these trends, not least in terms of the social biases in relative prices and household composition.     

Technical change and the ‘technology’ myth

Abstract

In recent years, historians and other English-speaking commentators on technical change and technical functions have often chosen to discuss these matters under the heading ‘technology’. Thus, there have been discussions about such matters as ‘echnological innovation’, ‘technological invention’, and even ‘the imperatives of technology’, ‘the technostructure’ and ‘technological drivenness’.¹ One economist with a special interest in historical matters, Kuznets, has virtually defined a separable condition of ‘modernity’ as the era of ‘technology’ — ‘The epochal innovation that distinguishes the modern economic epoch is the extended application of science to problems of economic production’ alternatively, it is ‘the utilization of a potential provided by modern technology’. An economic historian (Musson) has it that ‘applied science is … the major force behind modern economic growth’. And a prominent historian of the so-called ‘technology’, Forbes, has argued that in ‘our modern world both technology and engineering are branches of applied science’.²     

Indigenous accumulation in the Kimberley during the early years of ‘self‐determination’, 1968–1975

This article — using empirical data gathered from, among other sources, the Western Australian State Records Office, National Archives, and Hansard — traces the trajectory of indigenous owned businesses in the Kimberley region of Western Australia. As part of the analysis, the article investigates the main reasons for a shift to the development policy of ‘self‐determination’ during the early 1970s. As well, there is recognition of the major contribution made by an emerging Aboriginal leadership to the evolving policy regime. In doing so, there is a critical re‐evaluation of the origins of, and support for, successful indigenous owned business enterprises.     

A theorist on basic questions of economic history

Abstract

The author of this slim, essay-like book—now translated into Swedish¹—s-is a leading economic theoretician, noted for his contribution to the development of Keynesian theory and to the theory of the short-run dynamics of the trade cycle, as well as to modem theory of macro-economic growth. He is, however, known to a generation of modern economists above all as a ‘market’ theorist within the Walrasian tradition. In the present book he abandons his role as a strict market theorist, concerned with such things as the ‘existence’ and ‘stability’ of market equilibria, and attempts to explain the historical emergence and development of the market system or economy as an institution or set of institutions. He disarmingly forfeits any claims to expertise on this topic, and I think wisely so; but he is far from being altogether a layman or a newcomer to economic history. He professes an early love of the subject, and although it was a romance that never resulted in marriage, he has, through constant association with leading British economic historians and through his own writings in the history of economic thought, preserved and developed some of the faculties of a historian. Yet, this book-as its title indicates-is essentially theoretical. Hicks develops a set of interpretative hypotheses mainly by a priori reasoning. The empirical references must be looked upon more as illustrations of his theses than as evidence in support of their empirical validity.     

British working‐class household composition,labour supply,and commercial leisure participation during the 1930s

The early twentieth century constituted the heyday of the ‘breadwinner–homemaker’ household, characterized by a high degree of intra‐household functional specialization between paid and domestic work according to age, gender, and marital status. This article examines the links between formal workforce participation and access to resources for individualized discretionary spending in British working‐class households during the late 1930s, via an analysis of household leisure expenditures. Leisure spending is particularly salient to intra‐household resource allocation, as it constitutes one of the most highly prioritized areas of individualized expenditure, especially for young, single people. Using a database compiled from surviving returns to the Ministry of Labour's national 1937/8 working‐class expenditure survey, we examine leisure participation rates for over 600 households, using a detailed set of commercial leisure activities together with other relevant variables. We find that the employment status of family members other than the male breadwinner was a key factor influencing their access to commercial leisure. Our analysis thus supports the view that the breadwinner–homemaker household was characterized by strong power imbalances that concentrated resources—especially for individualized expenditures—in the hands of those family members who engaged in paid labour.     

Extending home ownership before the First World War: the case of the Co‐operative Permanent Building Society, 1884–19131

Formed in the mid‐nineteenth century, the building societies grew rapidly from their humble beginnings as localized ‘self‐help’ institutions to become the dominant players in the house mortgage market by the interwar period. Throughout their early history, the societies presented themselves as champions of home ownership among the working classes, but historians of housing have generally disputed the role that building societies played, or could have played, in extending home ownership before the First World War. The case study presented in this article shows that it was possible for a building society to lend to working‐class borrowers, and that home ownership before the First World War was not beyond the grasp of such people. While it was undoubtedly an exception within the movement, the Co‐operative Permanent Building Society showed a genuine commitment to working‐class owner‐occupation, providing the majority of its loans to both skilled and unskilled workers on easy repayment terms. How it was able to overcome the adverse selection and moral hazard risks involved in lending to such groups of people is the focus of this article.     

Poor relief,labourers’ households and living standards in rural England c.1770–1834: a Bedfordshire case study1

This article estimates the contribution of poor relief to the household economies of the labouring poor in the two case‐study communities of Campton and Shefford, east Bedfordshire, and thereby throws further light on the standard of living of workers during industrialization in the south and east. Utilizing the technique of nominal record linkage between poor law sources and family reconstitution for the period c.1770—c.1834, the article charts the growth in social welfare and estimates the proportion of inhabitants benefiting from regular relief payments, the changing family circumstances of recipients, and the proportion of total income made up by poor relief.     

A mirror of history: China's bond market, 1921–42

This article provides a quantitative assessment of contemporary beliefs about historical events by econometrically identifying ‘break points’ in China's domestic bond market from 1921 to 1942. We find that these ‘break points’ usually coincided with the events highlighted by the Shanghai Newspaper—an influential daily newspaper produced during the time of the Republic of China. These events are also generally considered to be crucial by historians—for example, the Japanese invasion of Manchuria and the outbreak of the Second Sino‐Japanese War. However, some events to which historians attach great importance, such as the conflicts between Nationalists and Communists in the 1930s, were not reflected in the bond market and did not attract much media attention. Some events, such as the Sino‐Japanese ceasefire in Tanggu in 1933, were thought to be crucial by contemporaries, but have been downplayed by later observers.     

Theft under Stalin: a property rights analysis

Recent work on dictatorship has focused on how repression is used by dictators to eradicate political opposition. This article examines evidence from one of the most important dictatorships of the twentieth century to suggest that this may tell only half the story. As Stalin's dictatorship progressed, repression was increasingly administered neither by the secret police nor the military—as in most dictatorships—but through the ordinary courts. The article proposes an explanation, one broadly consistent with Olson's hypothesis that Stalin was a ‘proprietary dictator’, an autocrat with a long time horizon who made major investments in public goods. Stalin's new form of property—‘socialist property'—was one such public good. To legitimize the new form of ownership, Stalin ruled that it should be enforced through the ordinary justice system, albeit initially with high levels of repression. The article also makes two further contributions. It shows, first, how Stalin's theft campaigns are a striking historical example of what happens when an unpopular law clashes with social norms, and of how it might backfire. Second, it demonstrates how, as property rights theorists would predict, the main objects of theft legislation are generic or homogeneous goods with few property attributes.     

Some arguments for (moderately) capital-intensive development,even in labour-abundant nations

This essay suggests that there may be good reasons why some labour-abundant developing nations prefer capital-intensive economic activities. In developing nations where large amounts of time and investment would be required to achieve full employment of their labour, policy-makers may do better to seek a capital-intensive development programme that increases labour productivity, inspires technological change, and, through rapidly increasing national income, increases the demand for labour in the long run by more than a labour-intensive approach would. A diagrammatic representation is presented. The suggestion is offered that a ‘moderate’ capital-intensive strategy, in which factor prices are maintained ‘just’ — rather than ‘much’ — different from their scarcity values, should encourage labour-augmenting technological change.     

Integrated rural development programmes: A historical perspective

The pervasive poverty in rural areas has represented a continuing concern of national governments and development assistance agencies. One response to pervasive poverty has been the design of local institutions to enable rural communities to mobilize their own resources to generate growth and improve the quality of life. Programmes organized under the rubric of ‘community development’ were a major focus of development assistance during the 1950s and early 1960s. During the early 1970s concern about the distributional implications of economic growth again emerged as a major theme in development thought and development policy. This concern gave rise to two new development assistance approaches — ‘integrated rural development’ and ‘basic needs’ programmes. In this paper, I attempt to trace the development, accomplishments and limitations of the community development, integrated rural development and basic needs approaches.