The Perspective of the World: Civilization and Capitalism 15Th-18th Century Vol. 3 [Paperback]

In fascinating detail, Braudel starts with the trade system of Venice, which allowed that tiny and resourceless city-state to dominate the world trade economy for centuries, and which culminated in the golden age of Amsterdam. THese cities, he argues persuasively, pushed commercial and financial capitalism to new heights, that is, with a combination of banking and control of trade routes, they created monopolies that benefitted themselves largely at the expense of their trading partners. They did so with a combination of readily mobilisable financial capital, clever warehousing (particularly in Amsterdam, which was like a perpetual market fair) that allowed them to control supplies and hence sell items at the right time for the higest price, domination of shipbuilding technologies as well as naval prowess (i.e. state piracy), and the control of the origin of their supplies, as in the Dutch East Indies for the spice trade. Braudel argues that it was a conscious policy. He also deliniates how Spain and then Portugal were beaten.

He then moves on to the birth of industrial capitalism in England in the late 18th C, which the loss of the American colonies - and hence ended its military obligations there while trade increased - facilitated. The great difference here, which he argues is a creative extension of the other long-existing forms of capitalism rather than its true beginning as many claim - was that investment was made in new technologies. It is similar to what the U.S. and Japan have done as major economic powers with different industrial systems: the U.S. had the largest national market, while Japan created cartels that could control prices (going after market share rather than immediate profit).

Braudel also examines basic questions of how an economy is successfully "revolutionised." What makes inventions take off in one society and not another? Is it one factor, or many acting together in concert? In particular, he compares the cases of the newly de-colonised United States and Latin American, in which the former was able to place itself at the center of the world economy and compete while the latter were weak and hence consigned to a subordinate role by the superpower of the day, Great Britain. He also examines the case of France, which was never able to enter the first rank of commercial and industrial nations prior to the 20C because, he argues, Paris (an administrative and not a trade capital) dominated the country and never learned to respect entrepreneurs.

These arguments are truly fascinating and presented with the perfect amount of detail: not too much as is often the case with Simon Schama, and not so little that only specialists can understand it. While it is sometimes difficult to follow his thread of logic, there is so much to learn from this book that I will consult it for the rest of my professional life. As a measure of its interest, I kept a marker in the footnotes, where I loved to look for references on virtually every page.

Nonetheless, as a 2000-page book that I loved, I am glad that it is done! It took me nearly two years to get through it all and I wished at times that it was more succinct. I found myself fliiping through it to see where illustrations would shorten the text. The conclusion, which attempts to offer persoective on the present, is also badly dated.

All in all, this is the most interesting and best economic history that I have ever read.