The World Economy: The Evolution Of The Global Economy

The wealth of a nation is the total value of wealth possessed by the citizens which is generated by the economic activity. The wealth of a nation can be estimated by three major components namely Natural Capital (Resources), Produced Assets (stock) and Human Resources (labour forces).

In the olden times the amount of natural resources was considered to be the wealth of a nation but with the advent of the Industrial Revolution it marked a major turning point in history as it began in Great Britain, and spread to Western Europe and North America within a few decades. This start and end of the Industrial Revolution accelerated the pace of economic and social changes. GDP per capita was broadly stable before the Industrial Revolution but with

India is regarded as the world’s richest country in the world and had the world’s largest economy till the 17th century AD in this book.

He also had calculated the historical statistic of world’s largest GDP that by 2030 India 2030 India will have 10,074,000 million and China 22,983,000 million since it was resource rich but the actual figure of India’s Gdp in 2014 is worth 2066.90 billion us dollars which is only 3.33 percent of the world economy and China was worth 1036.10 billion US dollar which is only 16.71 percent of the world’s economy as against what Angus had predicted.

Even in today’s age colonialism in the garb of imperialism which exploits natural resources because capitalism does not respect it as much as capitalistic labour. This is seen in Africa where resource rich countries are facing resource curse.

This paper will elucidate two examples from contemporary history about the scant respect for natural resources on its owners.

Sierra

Over the next few years, he acquired new partners and expanded his business interests in the growing oil industry. At the time, kerosene, derived from petroleum and used in lamps, was becoming an economic staple. In 1870, Rockefeller formed the Standard Oil Company of Ohio, along with his younger brother William (1841-1922), Henry Flagler (1830-1913) and a group of other men. John Rockefeller was its president and largest shareholder.

Standard Oil gained a monopoly in the oil industry by buying rival refineries and developing companies for distributing and marketing its products around the globe. In 1882, these various companies were combined into the Standard Oil Trust, which would control some 90 percent of the nation’s refineries and pipelines. In order to exploit economies of scale, Standard Oil did everything from build its own oil barrels to employ scientists to figure out new uses for petroleum