“By that time a structure of property rights had developed in the Netherlands and England which provided the incentives necessary for sustained growth. These included the inducements required to encourage innovation and the consequent industrialization. The industrial revolution was not the source of modern economic growth. It was the outcome of raising the private rate of return on developing new techniques and applying them to the production process.”

Source: The rise of the western world, 1973, p. 157

Adopted from Wikiquote. Last update Oct. 2, 2023. History

Help us to complete the source, original and additional information

Do you have more details about the quote "By that time a structure of property rights had developed in the Netherlands and England which provided the incentives …" by Douglass C. North?

Douglass C. North18

American Economist 1920–2015

Related quotes

“Every change in the social order, every revolution in property relations, is the necessary consequence of the creation of new forces of production which no longer fit into the old property relations. Private property has not always existed. When, towards the end of the Middle Ages, there arose a new mode of production which could not be carried on under the then existing feudal and guild forms of property, this manufacture, which had outgrown the old property relations, created a new property form, private property. And for manufacture and the earliest stage of development of big industry, private property was the only possible property form; the social order based on it was the only possible social order.”

Friedrich Engels (1820–1895) German social scientist, author, political theorist, and philosopher

(1847)

“The first economic revolution was not a revolution because it shifted man's major economic activity from hunting and gathering to settled agriculture. It was a revolution because the transition created an incentive change for mankind of fundamental proportions. The incentive change stems from the different property rights under the two systems. When common property rights over resources exist, there is little incentive for the acquisition of superior technology and learning. In contrast, exclusive property rights which reward the owners provide a direct incentive to improve efficiency and productivity, or, in more fundamental terms, to acquire more knowledge and new techniques. It is this change in incentive that explains the rapid progress made by mankind in the last 10,000 years in contrast to his slow development during the long era as a primitive hunter/gatherer.”

Douglass C. North (1920–2015) American Economist

Source: The rise of the western world, 1973, p. 240-1, as cited in: Thrainn Eggertsson (1990), Economic behavior and institutions. p. 255-6

“In the industrial mode of development, the main source of productivity lies in the introduction of new energy sources, and in the ability to decentralize the use of energy throughout the production of circulation processes. In the new informational mode of development the source of productivity lies in the technology of knowledge generation, information processing and symbolic … what is specific to the informational mode of development is the action of knowledge upon knowledge itself as the main source of productivity… in a virtuous circle of interaction”

Manuel Castells (1942) Spanish sociologist (b.1942)

Source: The Rise of the Network Society, 1996, p. 16-17 as cited in: Andy Hargreaves (2003) Teaching in the Knowledge Society: Education in the Age of Insecurity. p. 16

“The abolition of private property is, doubtless, the shortest and most significant way to characterize the revolution in the whole social order which has been made necessary by the development of industry – and for this reason it is rightly advanced by communists as their main demand.”

Friedrich Engels (1820–1895) German social scientist, author, political theorist, and philosopher

(1847)

“Economic growth occurs if output grows faster than population. Given the described assumptions about the way people behave, economic growth will occur if property rights make it worthwhile to undertake socially productive activity. The creating, specifying and enacting of such property rights are costly… As the potential grows for private gains to exceed transaction costs, efforts will be made to establish such property rights. Governments take over the protection and enforcement of property rights because they can do it at a lower cost than private volunteer groups. However, the fiscal needs of government may induce the protection of certain property rights which hinder rather than promote growth; therefore we have no guarantee that productive institutional arrangements will emerge.”

Douglass C. North (1920–2015) American Economist

Source: The rise of the western world, 1973, p. 8

“Our combined endeavour should be to ensure that the rate of economic growth is sustained and it is socially inclusive; We must also ensure that every region of the country participates in and benefits from the process of economic growth.”

Pratibha Patil (1934) 12th President of India

Quoted in The Times of India, "Pratibha Patil sworn in as President" http://timesofindia.indiatimes.com/india/Pratibha-Patil-sworn-in-as-President/articleshow/2232871.cms, July 25, 2007.

“First, most of the speculation about the superiority of the communist system - including the popular view that Western economies could painlessly accelerate their own growth by borrowing some aspects of that system - was off base. Rapid Soviet economic growth was based entirely on one attribute: the willingness to save, to sacrifice current consumption for the sake of future production. The communist example offered no hint of a free lunch.
Second, the economic analysis of communist countries' growth implied some future limits to their industrial expansion - in other words, implied that a naive projection of their past growth rates into the future was likely to greatly overstate their real prospects. Economic growth that is based on expansion of inputs, rather than on growth in output per unit of input, is inevitably subject to diminishing returns. It was simply not possible for the Soviet economies to sustain the rates of growth of labor force participation, average education levels, and above all the physical capital stock that had prevailed in previous years. Communist growth would predictably slow down, perhaps drastically.”

Paul Krugman (1953) American economist

Pop Internationalism (1996), Asia's Miracle (1994)

“They, economics and evolution, are both examples of a larger process, which has been at work in this part of the universe for a very long time. This is the process of the development of structures of increasing complexity and improbability. The evolutionary process always operates through mutation and selection and has involved some distinction between the genotype which mutates and the phenotype which is selected. The process by which the genotype constructs the phenotype may be described as "organization". Economic development manifesto itself largely in the production of commodities, that is, goods and services. It originates, however, in ideas, plans, and attitudes in the human mind. These are the genotypes in economic development. This whole process indeed can be described as a process in the growth of knowledge. What the economist calls "capital" is nothing more than human knowledge imposed on the material world. Knowledge and the growth of knowledge, therefore, is the essential key to economic development. Investment, financial systems and economic organizations and institutions are in a sense only the machinery by which a knowledge process is created and expressed.”

Kenneth E. Boulding (1910–1993) British-American economist

Kenneth Boulding (1977) Economic Development as an Evolutionary System, Fifth World Congress of the International Economic Association, Tokyo, Aug.-Sept. 1977.
1970s

“Explaining economic growth - The achievement motive : how it is measured and its economics effects - Achieving societies in the modern world - Achieving societies in the past - Other psychological factors in economic development - Entrepreneurial behavior - Characteristics of entrepreneurs - The spirit of Hermes - Sources of n achievement - Accelerating economic growth.”

David C. McClelland (1917–1998) American psychological theorist

Book abstract
The Archiving Society, 1961

“Acceptance of the Catholic position implies a certain willingness to see the present injustices of society continue… Individual salvation implies liberty, which is always extended by Catholic writers to include the right to private property. But in the stage of industrial development which we have now reached, the right to private property means the right to exploit and torture millions of one's fellow creatures. The Socialist would argue, therefore, that one can only defend property if one is more or less indifferent to economic justice.”

George Orwell (1903–1950) English author and journalist

Source: Review of Communism and Man by F. J. Sheed in Peace News (27 January 1939)

Help us to complete the source, original and additional information

Douglass C. North18

Related quotes

Related topics