According to Acemoglu & Robinson, there were particular reasons why the Industrial Revolution occurred in England and not anywhere else. Explain those reasons. What would they recommend developing countries to do if they want to foster industrialization today and increase their engagement in trade with the global economy? Keep in mind that industrialization and trade today mean competing with the likes of the United States, China, European countries, etc. Also, there are no right answers but they are coherent and logical answers derived from available theory and good practices.
Financial innovations: In the 17th and 18th centuries, a lot of financial innovations took place in England. Bursary, inventory market, joint stock companies, all of which arrived very soon in England. And all of these helped investors take on ambitious investment projects and risks and it paid off. Another big thing is the Central Bank, England's first central bank began in 1694 and it was the first to introduce the idea of credit, i.e. the deposited money could be given on an interest to people, a brilliant idea. Earlier banks stored the cash and it was never flowing
Europe has always been a hot contest venue. European nations have always competed with each other, and there is advancement and innovation in such an setting. It can be said that England eventually stood out as the most competitive among the European nations.
The population of England doubled between 1750 to 1800. It provided them with ample human resource and abundant labour for factories.
Agricultural revolution : Agricultural revolution is a very big topic in itself. But still I will give a brief and compact explanation.
Tackling the problem is not simple for politicians and policymakers. Protests against trade deals are rapidly erupting if governments are considered to jeopardize the public good or the environment for better trade deals. In the global trade agenda, this is the fresh frontier.
The right of countries to protect their citizens and promote sustainable development can not be questioned by trade policy. But trade policy can and must guide the exercise of this right by nations.
The manner in which a country implements its regulatory choices, and the way it operates its regulations, is not a free-for-all – especially when it frustrates the attainment of sustainable development through trade by other countries, particularly the poorest countries.
Countries can and should do much better in avoiding unnecessary red tapefor trade in national regulatory processes. Rules and guidelines exist on this issue, by the WTO and the OECD for example. But the effective and efficient application of these principles is broadly missing.
Regulatory measures disproportionately affect trade in developing countries, so we need to strengthen their participation in international standard-setting bodies. Technical cooperation and capacity building needs to be increased to help these countries comply with regulatory requirements and reduce procedural obstacles
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