confirm there was nothing new in the rest of the world. China lacked the insti-
tutions and organizations that made for a cumulative process of finding and
learning. Schools, academies, learned societies, challenges, competitions and
the idea of progress were weak or absent in China. Though the Chinese
formally worshipped their intellectual ancestors, they had no tradition of
‘standing on the shoulder of giants’ (Landes, 2006:17).
The opposite occurred in fifteenth-century Europe which benefited greatly
from the ‘Colombian exchange’ as imports of new goods had a huge impact
(unlike in China) on everyday life. This term refers to the exchange of diseases,
ideas, food crops and populations between the New World and the Old World
after the voyages of Colombus starting in 1492. These included new calorie-
rich staple food crops such as potatoes, sweet potatoes, maize and cassava and
less calorie-intensive tasty foods such as tomatoes, chilli pepper, cacao,
peanuts and pineapples that are now key components of many Old World diets.
Equally, the exchange dramatically increased the availability of many Old
World crops such as sugar and coffee which were well suited to the soils of the
New World. Colonial trade did have a significant impact on welfare if not (as
discussed in Chapter 9) profit and production. Welfare gains in England from
the import of new (largely colonial) products between 1600 and 1850 (mainly
tea, coffee, sugar and treacle) was by 1850 estimated to be equivalent to about
15 per cent of national income. This was a large impact on general welfare
(Hesh and Voth 2009).
The introduction of potatoes from the New to the Old World had a signifi-
cant impact on the potential for urbanization. From a nutritional standpoint
potatoes were superior to pre-existing (before 1700) staple crops as they
provided more vitamins and nutrients and a greater supply of calories. Humans
can have healthy diets from consuming potatoes,supplemented with only
dairy which contain the two vitamins not present in potatoes (vitamin A and D)
(Nunn and Qian, 2011:599). Potatoes relative to Old World staples require less
land to produce the same amount of calories. In terms of labour per calorie
harvested potatoes are comparable to or better than cereals (Nunn and Qian,
2011:600). Potatoes also provided indirect benefits. They are easy to store and
provide excellent fodder for livestock (mainly pigs and cattle) especially
during the winter so could increase both meat consumption and manure (a
valuable input for crop production).
European regions suitable for potato cultivation began to experience
systematic increases in population and urbanization after 1700. The strength of
the relationship increased between 1750 and 1900 consistent with the gradual
European diffusion of potato cultivation. Potatoes increased fertility, life
expectancy and urbanization through raising the productivity of agriculture
and making nutritious food cheaper. When aggregating the potato impact
across all Old World countries, its introduction is estimated to explain 26 per
cent of the observed increase in Old World population between 1700 and 1900
and also 34 per cent of the observed increase in Old World urbanization
between 1700 and 1900 (Nunn and Qian, 2011).
288 Patterns and Determinants of Economic Growth