Key Moments
Joel Mokyr on Clans, Corporations, and a Culture of Growth
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Key Moments
Europe's divergence from China wasn't about economic inferiority, but a cultural shift driven by the Catholic Church's weakening of clans in favor of non-kin based 'corporations' like universities, fostering innovation and progress.
Key Insights
The Catholic Church's active prohibition of certain marriages, particularly beyond fifth-degree cousins, and its potential financial incentive to weaken kinship groups, spurred the formation of non-kin based 'corporations' in Europe, unlike in China where clans remained dominant.
European 'corporations,' such as guilds and universities, shared objectives rather than ancestors as a basis for cooperation, contributing to a divergence from China's clan-based social organization around the Middle Ages.
The concept of progress, the conscious pursuit of improving material life through science and technology, emerged in Europe around the 16th-17th centuries (the 'industrial enlightenment') and was largely absent in both Roman and Chinese civilizations.
British skilled workers during the Industrial Revolution were significantly superior to their continental counterparts, not due to religion, but a market-based apprenticeship system that fostered higher quality, more flexible training compared to guild-controlled continental systems.
Despite economic achievements, China's primary historical objective was stability and internal peace, contrasting with Europe's pursuit of progress and growth, leading to different societal trajectories.
While living standards in Britain during the Industrial Revolution show mixed evidence of rising, the average British soldier was two inches taller than the French, indicating better childhood nutrition and living conditions earlier on, which also contributed to higher worker productivity.
The role of the Catholic Church in fostering European corporations
Joel Mokyr posits a fundamental divergence between European and Chinese social organization starting around the Middle Ages, with the Catholic Church playing a pivotal role in Europe. In contrast to China, where extended family clans remained the primary organizing principle, Europe saw a decline in kinship groups. This shift was partly driven by the Church's peculiar obsession with prohibiting marriages between increasingly distant relatives, a policy that weakened the clan structure. Furthermore, the Church may have recognized that organizing society around nuclear families, rather than extended kin, resulted in more individuals dying without heirs, leading to their property reverting to the Church. This inadvertently created a vacuum that was filled by new forms of cooperation: 'corporations' where individuals united not by blood but by shared objectives. Examples include guilds and, crucially, universities, which became self-governing entities promoting knowledge and innovation. This transition from clan-based to corporation-based organization is presented as a key factor in Europe's unique historical trajectory. The unintended consequence of the Church's actions was the emergence of institutions that fostered competition and advancement, a stark contrast to China's enduring clan system.
China's clan system and its alignment with imperial bureaucracy
In China, the imperial bureaucracy found it convenient to rely on existing clan structures. Instead of weakening kinship ties, the state often partnered with these clans, outsourcing various functions. This reinforced the clan system's dominance and longevity, as opposed to the European model where the nuclear family, while perhaps too small for local public goods, became the foundation for new, non-kin based organizations. This fundamental difference in social organization laid the groundwork for differing paths of development.
The 'industrial enlightenment' and the concept of progress
A critical element differentiating Europe, particularly after the 16th and 17th centuries, was the emergence of the 'industrial enlightenment' and a novel concept of progress. This intellectual shift involved a fundamental belief that humanity could understand nature through science and apply this knowledge for material improvement, making life better. This was not an obvious insight and was largely absent in classical civilizations like Rome and Greece, where creativity was not strongly tied to technological application, and in China, where the focus was on stability and internal peace rather than continuous innovation. The Romans, despite their engineering prowess in infrastructure like aqueducts and roads, lacked a concept of ongoing progress; they solved problems and moved on. Similarly, Chinese society, though sophisticated, did not embrace the idea that scientific inquiry should be relentlessly directed toward making the world materially better. This sustained belief in progress, fueled by a willingness to challenge existing knowledge and pursue continuous improvement, became a powerful engine for technological advancement and economic growth in Europe, unlike in other major civilizations.
Europe's adoption of new goods and technologies
European growth was also characterized by its active adoption and adaptation of new crops and techniques from across the globe, particularly from Asia and the New World. While Europeans were agents of global change, integrating items like potatoes, corn, tobacco, peanuts, and sweet potatoes into their diets and economies, China tended to be more receptive to certain innovations. However, the Europeans' entrepreneurial spirit and outward-looking approach, exemplified by their ability to eventually replicate Chinese ceramics, set them apart. This willingness to embrace and integrate new knowledge was a key component of their dynamic development.
The British advantage in skilled labor and apprenticeships
During the Industrial Revolution, Britain possessed a distinct advantage in human capital, not due to religion but a superior system of apprenticeship. Unlike on the continent, where guilds heavily regulated training, England's market-based apprenticeship system was more flexible and competitive. This allowed young men to choose masters, leading to a higher quality and more diverse skill set among British workers. By the mid-18th century, foreign nations often sought out English engineers for sophisticated projects, highlighting the preeminence of British craftsmanship. The ability to scale up inventions and maintain complex machinery, which relied heavily on these skilled workers, was crucial for industrial success.
Divergent goals: stability versus growth
Mokyr emphasizes that the historical trajectories of Europe and China were shaped by differing ultimate goals. While Europe's focus increasingly turned towards progress and growth, China's imperial system prioritized stability and internal peace. This fundamental difference in societal objectives influenced institutional development and technological adoption. For instance, while Chinese cities could be vast, European urbanization eventually outpaced China's, especially post-1900 with the adoption of Western ideas. The penetration of Western intellectual property rights into China, leading to a surge in patents, illustrates this later convergence on European models of innovation.
The impact of external threats on Chinese and European development
Geographical and demographic factors also played a role. China, historically facing invasions from nomadic groups on its borders, developed a unified state with a focus on defense. Notably, invaders were often assimilated into Chinese culture. Europe, in contrast, remained politically fragmented, leading to frequent internal conflicts and competition among states. This fragmentation, rather than external threats, fueled continuous innovation and institutional experimentation, as states vied for advantage. This difference is highlighted by Mark Koyama's work on state formation.
Ambiguous living standards during the Industrial Revolution
The impact of the Industrial Revolution on living standards remains complex. While some argue for an increase, evidence suggests that during the peak of the revolution, rapid population growth constrained significant improvements for many. The higher dependency ratio and the challenges of urban living, as documented by Engels, meant that while the technology advanced rapidly, the immediate quality of life for those experiencing it was mixed. Significant gains in living standards became more apparent for subsequent generations, suggesting a long-term benefit rather than an immediate widespread improvement for those living through the initial industrial upheaval.
Mentioned in This Episode
●Companies
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●Books
●Concepts
●People Referenced
Common Questions
Joel Mokyr's book argues that the divergence between Europe and China's development stems from their differing social organizations. Europe developed 'corporations' based on shared objectives among unrelated individuals, while China increasingly organized around extended families or 'clans'.
Topics
Mentioned in this video
University where Joel Mokyr is a professor.
Mentioned as a significant factor in Europe's decline of extended families and the rise of the nuclear family, influencing social organization and potentially property reversion.
A British company established to trade with India, highlighting an asymmetry in corporate development compared to Indian entities engaging with Europeans.
Professor at Northwestern University and author whose book 'Two Paths to Prosperity' explores the divergence between Europe and China.
Mentioned as a figure associated with the shift in European thinking towards believing they could improve upon past knowledge and create better outcomes.
A chemist credited with contributions to organic chemistry, a field where Germany excelled.
An anthropologist whose arguments about the Catholic Church's role in weakening kinship structures are cited by Joel Mokyr.
A colleague of Joel Mokyr whose paper on the subject provided systematic evidence for the divergence between Europe and China.
Author of a book on Pliny, cited for pointing out the absence of a concept of progress in Roman writers.
Associated with the reform of the German university system, creating the concept of the modern research university.
A graduate student of Joel Mokyr whose paper linked proximity to universities with involvement in advanced manufacturing in 19th-century Germany.
Along with F. Wöhler, a key figure in the development of organic chemistry, contributing to German scientific leadership.
A friend and colleague of Joel Mokyr, who retired years prior, serving as a point of comparison for Mokyr's own continued work after receiving the Nobel Prize.
Joel Mokyr's book that analyzes the historical divergence between Europe and China based on their respective social organizations and cultural values.
A book by Frank Fukuyama, discussed for its argument regarding trust and its impact on the establishment of corporations in China.
A treaty port that experienced significant growth due to the settlement and administration of Westerners.
A key German state that underwent significant reforms, creating an effective civil service and investing heavily in human capital and education.
A treaty port that grew significantly due to the presence and self-management of Westerners.
Discussed in the context of the absence of an industrial revolution, with creativity not extending to the technological realm and a lack of interest in applying science to practical problems.
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