a) Economic growth across space and time
A look at the historical timeline will reveal that the world economy experienced significant growth after the 1500s. This can be partly explained due to the advancement in international trade and transport technologies. Economic growth was also high during the period 1870 to 1913 mainly due to the Industrial Revolution as well as further advancement in transport technologies.
From 1914 until 1945, the global economy experienced a gradual growth fuelled by three important factors: rapid rise in population, fewer barriers to international trade, and breakthrough technological advancements.
Economic growth brings prosperity in a country, which leads to improved quality of life for the general populace. We can measure economic growth through different metrics. The most popular benchmark of economic growth is gross domestic product (GDP) per capita, which represents an estimation of all goods and services produced by a country in one year divided by the country’s population. The measure of the change of GDP from one year to the next is called economic growth.
Various books written by a number of contemporary writers have examined economic changes over time and in different regions through reconstructions of GDP per capita. One notable book that I would like to briefly mention here is Monitoring the World Economy 1820–1992, written by Angus Maddison, who was a well-known British economist.
Maddison was born in 1926 in Newcastle upon Tyne, United Kingdom. He spent most of his life working as an economics professor at the University of Groningen, Netherlands, and died in 2010 in Neuilly-sur-Seine, France. After his death, his colleagues continued his work in the ‘Maddison Project’.1 His book, Monitoring the World Economy,2 is a fascinating and stimulating read that covers the entire world economy over the past two thousand years. He brought together data from around 56 countries representing 93 per cent of world output. Based on his study, the evolution of world GDP is shown in Figure 1.1.
You can see in Figure 1.1 that a significant economic expansion took place from 1950 to 1973. Average per capita world GDP since 1820 is depicted in Figure 1.2.
Maddison’s study found that there was a huge difference among regions and countries along with gross inequities in the distribution of income between individuals.3
Another book of Maddison titled The World Economy: A Millennial Perspective explains and explores the factors that contributed to the success of rich countries and the obstacles that hindered other countries that lagged behind.4 The book quantified long-term changes in world income and population. According to the study, three interactive processes have driven advances in population and income over the past millennium. These are:
a)Conquest or settlement of relatively empty areas which had fertile land, new biological resources, or a potential to accommodate transfer of population, crops and livestock;
b)International trade and capital movements;
c)Technological and institutional innovation.
Maddison says that during the past millennium the world population increased 22 times while at the same time per capital income levels increased by 13 times and world GDP an amazing 400 times. This is in stark contrast to the GDP growth experienced in the preceding millennium when there was no significant increase in population and economic growth. The above listed three processes contributed to growth in the human population and economy.
b) Human global population growth over time and space
World population growth has never been constant either in time or space: the growth was either positive or negative. Increase in rate of world population can be expressed by a simple equation as follows:
Change in Population Density = (Births + Immigration) − (Deaths + Emigration)
Let us look back in time to better understand and comprehend the human population growth and possible limits. Worldwide population was somewhere around 2 to 20 million in about 8000 bc; while by ad 1, the worldwide population had increased to 200 to 300 million people. During the 1500s, the human popula...