Development Centre Studies MADDISON «Development Centre Studies The World Economy VOLUME 1: A MILLENNIAL PERSPECTIVE VOLUME 2: HISTORICAL STATISTICS The World The World Economy brings together two reference works by Angus Maddison: The World Economy Economy: A Millennial Perspective, first published in 2001 and The World Economy: Historical Statistics, published in 2003. This new edition contains StatLinks, which allow you to download the tables in Excel® format. VOLUME 1: A MILLENNIAL PERSPECTIVE The World Economy is a “must” for scholars and students of economics and economic VOLUME 2: HISTORICAL STATISTICS history as well as for statisticians, while the casual reader will find much of fascinating interest. On The World Economy: A Millennial Perspective: “A tour de force. What a wonderful gift for the new century.” Robert Mundell, Nobel Prize winner and Professor of Economics, Columbia University. “An essential reference for anyone interested in global development for many years to come.” Paul Krugman, Professor of Economics, Princeton University. “Quite simply a dazzling essay.” Nicholas Eberstadt, American Enterprise Institute. “Highly recommended . refreshing and full of historical information. An important book.” Kisanhani F. Emizet, Kanzas University, writing in International Politics. The full text of this book is available on line via these links: The Economy World http://www.sourceoecd.org/development/9264022619 http://www.sourceoecd.org/emergingeconomies/9264022619 http://www.sourceoecd.org/transitioneconomies/9264022619 http://www.sourceoecd.org/nationalaccounts/9264022619 Those with access to all OECD books on line should use this link: http://www.sourceoecd.org/9264022619 SourceOECD is the OECD’s online library of books, periodicals and statistical databases. For more information about this award-winning service and free trials ask your librarian, or write to us at [email protected]. Contains www.oecd.org StatLinks This work is published under the auspices of the OECD ANGUS MADDISON Development Centre. The Centre promotes comparative development analysis and policy dialogue, as described at: ISBN 92-64-02261-9 www.oecd.org/dev 41 2006 02 1 P -:HSTCQE=UWW[VY: Development Centre Studies The World Economy Volume 1: A MILLENNIAL PERSPECTIVE Volume 2: HISTORICAL STATISTICS DEVELOPMENT CENTRE OF THE ORGANISATION FOR ECONOMIC CO-OPERATION AND DEVELOPMENT ORGANISATION FOR ECONOMIC CO-OPERATION AND DEVELOPMENT Pursuant to Article 1 of the Convention signed in Paris on 14th December 1960, and which came into force on 30th September 1961, the Organisation for Economic Co-operation and Development (OECD) shall promote policies designed: – to achieve the highest sustainable economic growth and employment and a rising standard of living in member countries, while maintaining financial stability, and thus to contribute to the development of the world economy; – to contribute to sound economic expansion in member as well as non-member countries in the process of economic development; and – to contribute to the expansion of world trade on a multilateral, non-discriminatory basis in accordance with international obligations. The original member countries of the OECD are Austria, Belgium, Canada, Denmark, France, Germany, Greece, Iceland, Ireland, Italy, Luxembourg, the Netherlands, Norway, Portugal, Spain, Sweden, Switzerland, Turkey, the United Kingdom and the United States. The following countries became members subsequently through accession at the dates indicated hereafter: Japan (28th April 1964), Finland (28th January 1969), Australia (7th June 1971), New Zealand (29th May 1973), Mexico (18th May 1994), the Czech Republic (21st December 1995), Hungary (7th May 1996), Poland (22nd November 1996), Korea (12th December 1996) and the Slovak Republic (14th December 2000). The Commission of the European Communities takes part in the work of the OECD (Article 13 of the OECD Convention). The Development Centre of the Organisation for Economic Co-operation and Development was established by decision of the OECD Council on 23rd October 1962 and comprises twenty member countries of the OECD: Austria, Belgium, the Czech Republic, Finland, France, Germany, Greece, Iceland, Ireland, Italy, Korea, Luxembourg, Mexico, the Netherlands, Norway, Portugal, Slovak Republic, Spain, Sweden, Switzerland, as well as Chile since November 1998 and India since February 2001. The Commission of the European Communities also takes part in the Centre’s Governing Board. The purpose of the Centre is to bring together the knowledge and experience available in member countries of both economic development and the formulation and execution of general economic policies; to adapt such knowledge and experience to the actual needs of countries or regions in the process of development and to put the results at the disposal of the countries by appropriate means. The Centre is part of the “Development Cluster” at the OECD and enjoys scientific independence in the execution of its task. As part of the Cluster, together with the Centre for Co-operation with Non-Members, the Development Co-operation Directorate, and the Sahel and West Africa Club, the Development Centre can draw upon the experience and knowledge available in the OECD in the development field. THE OPINIONS EXPRESSED AND ARGUMENTS EMPLOYED IN THIS PUBLICATION ARE THE SOLE RESPONSIBILITY OF THE AUTHOR AND DO NOT NECESSARILY REFLECT THOSE OF THE OECD OR THE GOVERNMENTS OF THEIR MEMBER COUNTRIES. © OECD 2006 No reproduction, copy, transmission or translation of this publication may be made without written permission. Applications should be sent to OECD Publishing: [email protected] or by fax (33 1) 45 24 13 91. Permission to photocopy a portion of this work should be addressed to the Centre français d'exploitation du droit de copie, 20, rue des Grands-Augustins, 75006 Paris, France ([email protected]). Table of Contents Foreword This publication brings together two reference works by Angus Maddison: The World Economy: A Millennial Perspective, published in 2001 and The World Economy: Historical Statistics, which was released in 2003. The first volume provides a comprehensive view of the growth and levels of world population since the year 1000, when rich countries of today were poorer than Asia and Africa. It is a pioneering effort to quantify the economic performance of nations over the very long term, identifying forces which explain the success of the rich countries, and exploring the obstacles that hindered advance in less developed regions. In the second volume, Angus Maddison offers a rare insight into the history and political influence of national accounts and national accounting. Based on revised and updated population estimates for 1950-2003 and GDP and per capita GDP estimates for 1820 to 2001, he demonstrates that such statistical data can shed light on the analysis of economic phenomena like growth, market formation and income distribution. This approach is particularly interesting for developing countries often lacking the expertise or data to produce good national accounts. It also serves as a reminder for OECD countries that effective policy making depends on verifiable economic data. The World Economy is a monumental work of reference and a “must” for all scholars and students of economics and economic history, as well as a mine of fascinating facts for everyone else. An attractive feature of this new edition is the inclusion of Statlinks, which provide access to the underlying data in Excel® format. Further analysis and data compiled by Angus Maddison can be found at: www.ggdc.net/Maddison 3 The World Economy: A Millennial Perspective ISBN 92-64-02261-9 – © OECD 2006 4 Table of Contents THE WORLD ECONOMY Volume 1: A Millennial Perspective 5 The World Economy: A Millennial Perspective ISBN 92-64-02261-9 – © OECD 2006 6 Table of Contents Foreword Shortly after my arrival at the OECD in 1996, I came upon the study by Angus Maddison “Monitoring the World Economy 1820–1992”. It is a fascinating and stimulating work providing a complete coverage of the world economy during the period in question. It brought together data of some 56 countries accounting for 93 per cent of the world output and 87 per cent of the world population and world exports. It never left my desk. Probably I was not alone in my appreciation of this quite extraordinary work, as I kept coming on references to it in the work of other authors. As we were nearing the end of the twentieth century, it seemed to me that this study could undergo some slight revisions to make it more attractive to general readership, and brought up to the close of the century and of the second millennium. I discussed the project with Professor Maddison and, to my delight, he agreed. From his enormous energy and intellectual capacity emerges a far greater work in depth and scope than anything I had imagined possible. This book covers the development of the entire world economy over the past two thousand years. The author takes a (quite literally) global view of world growth over that period, examining both changes over time and between different regions. The book has a wider ambit than any previous OECD publication or, indeed, than almost any other publication in the market worldwide. First, the scope of the analysis is breath–taking. Second, there must be few (if any) economic history books so wide in their reach, in terms of both geography and history. Third, although his approach is economic, it is not narrowly so and draws on many other subjects — history, geography, demography and more — on the path to its conclusions; this multidisciplinary sweep gives the book great value. Because of its value and its global reach, I am sure it will find a global readership, as an authoritative reference for academics, students, professionals and general readership. I predict it will find its place in homes, offices and libraries in every corner of the world, and for many years to come. It will undoubtedly be the foundation for further works of this kind during the millennium we have just entered. We should all be extremely grateful to Angus Maddison for having taken on this challenge with results which far exceed my original expectations.