Main Reasons Why Western Europe Is So Rich?

Brussels  (Brussels Morning Newspaper) – Many economists want to seek an answer that how Western Europe shifted from stagnation to ultimate growth. However, this shift occurred due to the Industrial Revolution in the 18th Century. They have successfully come out of poverty and have helped millions. Adam Smith contributed to the everlasting growth of Western Europe. This is one of the reasons why his picture is found on the back side of the British £20 note. He is popularly known as the champion of the free market. Following the idea of Smith’s Wealth of Nations, liberalization and free trade became more popular. How did Western Europe become so rich? Let’s look at the reasons why Western Europe is so rich.

Political Fragmentation Enhanced Productive Competition

Europe’s political fragmentation enhances productive competition in many ways. The European rulers tried to compete for the best. They all came up with productive ideas and strategies. According to the economic historian, Eric L Jones called it ‘the state’s system’. All the European political divisions started to grow in various states. It includes warfare, protection, and other coordination rules. Due to multiple competing states, everything led to scientific and technological innovation.

The idea behind the political fragmentation in Europe brought a lot of benefits. Even though the costs were high, everything was falling into place.  Edwards Gibbon wrote comprehensive details in The History of the Decline and fall of the Roman Empire (1789). He wrote: ‘Europe is now divided into 12 powerful, though unequal, kingdoms.’ Three of them he called ‘respectable commonwealths’, and the rest a variety of smaller, though independent, states”. 

Many monarchs were adopting modern ideas and looking for major economic stability. As honor and justice were introduced it led to a better constitution. The rivalry among states accelerated the industry in many ways. While the progress in knowledge and other activities led to greater success in the later years.

Dramatic Intellectual Changes With New Ideas and Thoughts

The unique combination of political fragmentation and pan-European institutions led to dramatic intellectual changes. In this way, a lot of new ideas were circulated. All the books that were written in one part of Europe were circulated in all the states. These books were read and quoted almost everywhere. Many intellectual superstars enjoyed support from local and other audiences alike. They could enjoy a good reputation throughout the states.

These people considered themselves as the citizens of the ‘Republic of Letters’. Western Europe became popular as a free commonwealth and empire of truth. The communities could set rules of conduct that were free to adopt. However, it was overall a competitive market. All these things contributed to the growth and success of Western Europe.

In this way, the intellectual community of Europe enjoyed the best of both worlds. This was a general belief that it is not easy to attain economic progress. With scientific and intellectual innovation a lot more could be achieved in a short time.

All natural philosophers and mathematicians adopted new ideas. With experimental science referred to as a prime tool, everything changed for the better. Every person was ready to adopt sophisticated mathematics that they could understand.

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Stable & Transparent Political System

Western Europe worked hard to maintain a stable and transparent political system. Whether it is good education, research facilities, or advanced technology, they have it all. These things define the success and growth of a country. Moreover, Europe has high GDP and they can produce a great deal with a small number of people. Technological innovation has helped them produce common products for everyone. If the Government is corrupt less it will mean that everyone remains well-educated.

All these strategies and plans have helped them have a perfect education system. While the transparent political system is maintaining law and order correctly. There is no doubt that a reliable political system can lead to economic growth. Western Europe will feel lucky as the introduction of modern plowing techniques has helped them a lot. Another reason for their success is that they are not into colonialism.

When the industrial revolution began it helped Western Europe work on market development. During the 17th and 18th centuries, economic growth became more stable than ever. If we want to understand how Western Europe became rich or why the Industrial revolution occurred, it can take a long time. Europe has learned from its past mistakes and come out to revolutionize its economic policies. All the agricultural techniques that are introduced in one country will move on to the others easily.