Economic Development and World Trade

Abstract

During the nineteenth century economic development overflowed from Europe and North America into Asia and Africa and Latin America by means of international trade. There were the usual substantial benefits. The trader brings new ideas: new tastes, which stimulate effort, and new techniques, which stimulate innovation. Additional income was generated, and though much was taken as profit, much remained behind not merely to add to local consumption, but also to finance ports, railways, electric power, water and other public utilities, and also indirectly through taxation to pay for schools, hospitals, a framework of law and public administration, and other public services. Some local industries were destroyed by imports, and others, such as human porterage, gave way to new techniques, but the net effect was undoubtedly a great increase in the capacity to produce real income.