Thursday, August 19, 2010

India and China were the biggest economies in the world most of the past 2000 years.

Via the Economist, we see this facinating oveview of Global GDP:

According to The Economist: “Data compiled by Angus Maddison, suggest that China and India were the biggest economies in the world for almost all of the past 2000 years.”

“Why they fell so far behind may be more of a mystery than why they are currently flourishing.”

The big population made them the biggest economies, and up until 200 years ago, population size was a dominant factor in economic output.

The industrial revolution, followed by the information revolution, made size less important. Europeans, then the US leveraged technology to rise GDP on a per capita basis.

These days, India and China are using industrial leverage, and are moving up in the world on a GDP per capita basis.

Geir Solem
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