Political Economy of China's Development in Historical Perspective: Great Divergence and Great Convergence

Abstract

The 18th century was marked by the Great Divergence in global growth levels. In this context, Europe experienced a period of prosperity driven by the Industrial Revolution, eclipsing then more advanced powers such as China. The Chinese establishment lasted until the end of the 20th century, when the country resumed its growth in an eventual Great Convergence in the 21st century. Some authors argue that the Chinese success was a consequence of its opening to the global market after 1980. Contudo, is this conjunctural vision sufficient to explain the Chinese development? The objective of the work is to analyze the recent economic growth of China in a long-term historical perspective, opening up the debates in the field of Political Economy. The statistical results demonstrate that China is returning to its natural condition of global economic power in the context of the 21st century, a position temporarily interrupted in a long-term perspective. The Chinese entrepreneurial State has a central role in the development of the country, investing in infrastructure and technological innovation in the Fourth Industrial Revolução in progress, as well as the English State has in the First Industrial Revolução. However, the historical contexts of two moments of rupture are different levels of growth: the Great Divergence was driven by imperialist and colonial expansion, while the Great Convergence unfolds within a context of political modernization, economic opening and cooperation between states and markets. emerging.