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Origin of Capitalism

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COURSE ID :2101COURSE NAME : Development Histories, Theories and PracticesLECTURER :Andrew Fischer |

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Is it Eurocentric view to explain the growth of capitalism solely on factors and conditions in Europe?

STUDENT ID: 377170tm

The term capitalism has been a center of a heated debate from many scholars in the discourses of politics, economy, law and academia for a long time. There is no straight forward definition of that term. However, in a context of this work, capitalism has four distinctive characteristics (Ellen, Wood: 2002).In the capitalist society, the economy is highly controlled by the market. By large the government is supposed to put no restriction in the markets and it lets an intense competition to drive the economy. The other characteristic of capitalism is that all the goods produced by capitalist are sold for profit. The primary purpose of capitalist society is to maximize profit by any means especially through exploitation of labour. Apart from that in capitalism, labour is considered to be a commodity like any other commodities and it can be sold and purchased in the market. In addition to that, all the means of production such as land, tools, machinery etc belong to the appropriators and not the producers. The producer can only render his expertise and labour power in exchange of the meager wages.
Different approaches have been used by scholars to explain the reasons for the rise and growth of capitalism in Europe. Some scholars argue that the growth of capitalism was a result of conditions in Europe only while others explain that the growth of capitalism grew due to a combination of factors both internal and external. Therefore, that being the case, I am of the view that explaining the growth of capitalism solely based on the factors and conditions in Europe would be a Eurocentric view. To substantiate my argument I will explain both the internal and external factors which contributed to the growth of capitalism in Europe.
The first explanation is commercialization model. This approach was established by Adam Ellen Wood Melksin, in his work The Origin of capitalism: A longer View (Wood, Ellen: 2002). In this approach Ellen explains that societies in Western Europe especially English societies had been trading for a long time before 16th century. That commercialization led into specialization. And that specialization caused division of labour, improved production and expansion of markets. In that way therefore, capitalism was born.
According to Smithian point of view, capitalism in Europe was just a maturation of the long trading societies to capitalistic society. Ellen Wood elaborates further that it was only required to remove the political, social, economical and religious hurdles which were preventing growth of capitalism for it to emerge. That explanation assumes that capitalism was embryonic. And that even if nothing had happened in other parts of the world capitalism could have grown in Europe so long as they had the right conditions. In my view, such an explanation is Eurocentric as it tends to ignore the contributions of other external factors in growth of capitalism and praises Europe only for the removing the development hurdles.
The second condition is an agrarian revolution (Ellen, Wood: 2000). As opposed to commercialization model, the scholars in support of this reason trace the emergence of capitalism in the growth and improvement of agriculture. Ellen Wood elaborates that agricultural improvement was due to the invention of wheel plows, up and down husbandry, crop rotation and drainage of marsh lands. Such innovation led to high production especially of grain and cereals. High productivity changed the forms of property ownership. Long time ownership of land was needed. To achieve that, the long established common land ownership was abolished either by force or through legal enclosures. The foreclosures and private ownership of land caused the emergence of mass landless men. The landless men turned to sell their labour power for a living. Most of the landless men moved to towns like London leading to the growth of cities and industrialization. The rise of cities, industrialization and sell of labour led to market oriented economy. Therefore, this factor traces growth of capitalism in transformation of property relation in England and it is a Eurocentric opinion as it emphasis the genesis of capitalism in that condition only in England and disregards the contribution of the external factors like colonialism.
The third explanation for the development of capitalism in Europe comes from the religious beliefs (Weber: 2004) Max Weber explains that the rise of ascetic Calvinism contributed greatly in the rise of capitalism in England. The Calvinists were basically opposing the monarchical, luxurious and in Weber’s own words, it was “against spontaneous enjoyment of life”. They encouraged all followers to work hard. That work was a Calling from God. Labour being a Calling from God, every member was required to follow his call to the best of his ability. While they encouraged people to accumulate wealthy through work, they discouraged them to use it through irrational manner. That resulted into more investment and more wealthy.
As a result more people became rich, production increased, trade and markets expanded. In addition to that the Calvinists being from the most elites groups at that time, it transformed the businesses through discovery of ledger and book keeping, location of sea vessels through astronomy, private ownership of property, autonomy in business and free markets. So, in that way, the modern capitalism was born.
However, apart from the above internal approach in explaining the rise and growth of capitalism, there are other arguments which explain the emergence of capitalism from the external factors.
The first reason is the world system theory as given by Frank Gunder (Robert Brenner: 1977). As, Robert Brenner clarifies this theory explains that the growth of capitalism in Europe was a result of commercial networks. That the trade networks began in Italian cities like Venice spread to Iberia, the Mediterranean Sea, to sub Saharan Africa and later in the whole world. And that Europe’s connection to the peripheral (the colonies) through the above trade networks helped growth of capitalism through collection of raw materials, surplus capital, expansion of market and further industrialization. In that view, therefore the author opposes the views that the rise of capitalism was only propelled by factors and condition only in Europe but rather by both the internal and external conditions.
The second argument is based on fossil fuel and Europe’s access to the New World (Pomeranz, K. 2002). In that ground Keneth Pomeranz puts forward the growth of capitalism was promoted by Europe’s access to the New World and the presence of the fossil fuel. He argues that a combination of those internal and external factors played a great role. He came to that conclusion after doing a comparative analysis between China and Europe’s level of development by 16th century. He found that both countries were equal. But, Europe managed to take off rather than China because of fossil fuel and access to the New World. The fossil fuel helped to fuel the industrial production while the new world provided the necessary raw materials, surplus capital and markets.
So, such evidence cements my argument that explaining growth of capitalism solely on factors in Europe would be a Eurocentric view.
However, in short analysis, I would say, whatever position one takes in this question, there still question that are subject to discussion. If china, India and some other parts of the world were ahead or at par with Europe in development level in 16th century then, why did Europe manage to escape from the cage and not China? And if Europe developed due to its access to the New World, why did China not go out also. Yet, a complete neglect of the contribution exerted by other parts of the world in building capitalism in Europe through mercantilism and colonialism would be unjustifiable.
In conclusion therefore, I find that the growth of capitalism in Europe was a result of both internal and external factors. Neglecting the role played by external conditions would be a Eurocentric view.

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[ 1 ]. Wood, Ellen Meiksins, 2002 The Origin of Capitalism: A longer view, Chapter 1 (The Commercialization Model and Its Legacy) pp. 2-3
[ 2 ]. Ibid
[ 3 ]. Khan, Mushtaq (2005), ‘The Capitalist Transformation,’ in KS Jomo and Erik S Reinert, the Origins of Development Economics. London: Zed Books, p.4 [12pp].
[ 4 ]. Wood, Ellen Meiksins, 2002 The Origin of Capitalism: A longer view, Chapter 1 (The Commercialization Model and Its Legacy) pp. 2-3
[ 5 ]. Wood, Ellen Meiksins (2002) The Origin of Capitalism: A longer view, Chapter 1 (The Commercialization Model and Its Legacy) pp. 12
[ 6 ]. Wood, Ellen Meiksins. 2000. The agrarian origins of capitalism. In Hungry for profit: the agribusiness threat to farmers, food, and the environment, pp. 23-42, edited by F. Magdoff, J.B. Foster and F.H. Buttel. New York: Monthly Review Press.
[ 7 ]. Weber, M (2004) “Puritanism and the Spirit of Capitalism” in S. Whimster The Essential Weber,pp. 25-34
[ 8 ]. Ibid
[ 9 ]. Brenner, Robert, ‘The Origins of Capitalist Development: A Critique of Neo-Smithian Marxism’ New Left Review 104, July-August 1977: 25-92
[ 10 ]. Pomeranz, K. (2002) “Political Economy and Ecology on the Eve of Industrialization: Europe, China and the Global Conjuncture” American Historical Review, v.107, n.2, pp. 445-446

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