POL101Y1 Lecture : Jan 31 "How the rest got rich" Lecture
Document Summary
Capitalism and bureaucracy have found each other and belong intimately together. Getting rich has less to do with people, rather it has more to do with systems . 3 pillars of hong kong"s economy: tourism, business services (finance, banking, stock-market, etc , logistics (hong kong has a significant comparative shipping advantage) Decline of spanish dominance end of 16th century. Multicultural i. e. , amsterdam catholics, protestants, jews, muslims, etc. al lived together in the name of commerce: brought global knowledge. Industrial innovation: wind turbine power/saw mill energy was used for industrialization. Modern finance: first stock exchange was created, first central bank which was willing to invest, raised capital from public sources. Trade: economy was based on international trade, multinational trading economy. Wind turbine power/ saw mills allowed for cheap ship building: less labor was required, lower costs. The flute had a shallow hull: allowed ships to dock at any port. Increased cargo capacity 50% greater than any other ship.
