2ndlook

Western Europe – The Decline In Economic Power

Posted in British Raj, China, Current Affairs, European History, Gold Reserves, History, Pax Americana by Anuraag Sanghi on March 28, 2008

Share Of World GDP  |   Share of GDP: China, India, Japan, Latin America, Western Europe, United States; January 20, 2008; image source & courtesy - visualizingeconomics.com

Share Of World GDP | Share of GDP: China, India, Japan, Latin America, Western Europe, United States; January 20, 2008; image source & courtesy – visualizingeconomics.com

The interesting statistic (graphical representation by Catherine@Visualizing Economics) in this chart is the cycle of Western Europe GDP. This, you will note, largely tracks the rise and fall of slavery and its proxy, colonialism. The rise of the West has been a case of ‘consumption’ of slaves to fuel their economic rise. Note the rapid fall in Western Europe incomes and GDP after loss of slaves and colonies – starting from 1850s (decline in slavery begins) till the 1950 (when decline in colonialism begins).

The current share of Western European GDP is also a statistical miracle based on the Bretton Woods financial topology – and the statistical lag between reality and its measures. Having painted themselves, in a corner, with a high cost economy, a bloated welfare state, an aging population (again, a side effect of the slavery on social structures; who would want a wife, if one can have a slave instead), Western Europe is terminally sick.

Combine the declining share of the economic pie and the rise in neo-con clamour, calls for increased vigilance against Western adventurism in the Middle East, Africa and maybe Asia too.

Is Iraq, Afghanistan, Pakistan, the shape of things to come?

 

Advertisements

5 Responses

Subscribe to comments with RSS.

  1. Parag Tope said, on March 31, 2008 at 4:28 am

    I like the basic hypothesis that you make here.

    However, there are some other “real” considerations.
    1. Trade and industrial diversion from India/China to Europe (looting)
    2. Absolute GDP’s of each of the countries…

    That’s where the real problems in the data exists. I am pretty sure this is compiled from the Angus Maddison book published a few years ago. On the surface the data seems to correlate with what is largely expected, but dig a little deeper and you’ll find mischief.

    In addition you need to address the standard argument meted out…

    “…the Industrial ‘revolution’ and innovation allowed the European nations to surpass the economies of the manufacturing powerhouses of the time viz. India and China, who were simply not able to keep up with western innovation…”

    This argument is a lot harder to counter using Maddison’s data since his analysis basically supports this notion…

    …I think your premise is strong – but I don’t think you will find any data from European/American sources to support it… this is going to take some serious work…

    Parag

  2. Anuraag Sanghi said, on March 31, 2008 at 7:23 am

    European Renaissance

    Europe’s Renaissance was funded with the loot from the (Red) Indian gold, later the (Brown) Indian gold and lastly by the discoveries in California. In the twentieth century it was the South African, Australian and Canadian gold which funded the expansion of Europe.

    The Rise & ”Fall” Of The British Empire

    The rise of the British Empire was funded by slavery and gold exploitation from Australia, Canada, America and South Africa. In a short span of 50 years, after losing WW2 and the Indian colonies, British Empire, the greatest the world had known, nearly became a third world country by 1980.

    The Myth Of Western Technology

    In the last 50 years, after WW2, the rise of Japan, Korea and China in manufacturing and technology and the Indian software success, have taken away the sheen from the myth of western technological prowess. Post colonial revisions in history are eroding the Euro-centric version of concocted history.

    India and China could not compete with Western technological progress – as the necessary investments required were not available with a ‘looted’ India and China – and where Indian business was not allowed to flourish.

    Proof – look at the collapse of British business after the loss of colonies and the rise of Chinese and Indian economies again with just 50 years of freedom /stable national governments.

    Unlike egalitarian Indian succession laws, primogeniture and slavery ‘freed’ Europeans youth to follow their path to loot, rape, commit crime, wage war, annihilate natives, enslave peoples – and also innovate and study. These activities were funded by the gold looted from Americas, Australia, Africa and India.

  3. Anuraag Sanghi said, on March 31, 2008 at 7:47 am

    The 2 major points I am making are that: –

    1. The West is terminally sick and – like Egypt, Greece, Rome, Islamic Empires, and The European Expansion – which were funded and grew on slavery and loot, will peter out. How long will this take – in the next few decades or a century based on current trends and possible actions.

    2. While this winding down is happening, the West is indulging in some adventurism, against which we need to be vigilant.

  4. Parag Tope said, on April 1, 2008 at 5:25 am

    I am going to play the devil’s advocate here… since these are oft repeated arguments that I hear being made and I have my way of explaining it – but I would like to hear your arguments…

    >>In the last 50 years, after WW2, the rise of Japan, Korea and China in manufacturing and technology and the Indian software >>success, have taken away the sheen from the myth of western technological prowess. Post colonial revisions in history are >>eroding the Euro-centric version of concocted history.

    The decline of Asia was primarily because the society and its economics were unable to compete with the free market capitalist society of the west. Japan/Korea, and later China followed by India’s rise – was because they abandoned their “legacy” social and economic systems that were holding them back and adopted “modern” and “forward looking” western ideas.

    Take that 😉

    Parag

  5. Anuraag Sanghi said, on April 2, 2008 at 9:12 am

    Considering the number of failed Western countries, which have been there and done that … to give credit to Westernization is a hollow claim. More on this in my post … Republican Democracy – The Mirage.

    Also consider the number of failed Westernizations by non-Western countries, again fails the Westernization test. The only system that has worked consistently is the Gandhian, non violent system of change – which is detailed in my post India’s Biggest Success – Gandhiji.

    Regarding transient economic “success”, I would point out the ‘success’ of many failed econmic agenda countries – Russia, Indonesia, et al.


Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: