www.ebook3000.com Why Australia Prospered THE PRINCETON ECONOMIC HISTORY OF THE WESTERN WORLD Joel Mokyr, Series Editor A list of titles in this series appears at the back of the book www.ebook3000.com Why Australia Prospered The Shifting Sources of Economic Growth Ian W McLean Princeton University Press Princeton and Oxford Copyright © 2013 by Princeton University Press Published by Princeton University Press, 41 William Street, Princeton, New Jersey 08540 In the United Kingdom: Princeton University Press, Oxford Street, Woodstock, Oxfordshire OX20 1TW press.princeton.edu All Rights Reserved Library of Congress Cataloging-in-Publication Data McLean, Ian W Why Australia prospered : the shifting sources of economic growth / Ian W McLean p cm — (The Princeton economic history of the Western world) Includes bibliographical references and index ISBN 978-0-691-15467-1 (hardcover) Economic development—Australia Australia—Economic policy—21st century I Title HD82.M3345 2013 338.994—dc23 2012008056 British Library Cataloging-in-Publication Data is available This book has been composed in Minion Pro Printed on acid-free paper ∞ Printed in the United States of America 10 www.ebook3000.com Contents List of Figures ix List of Tables xi Preface and Acknowledgments xiii Map xvi Chapter Introduction: Weaving Analysis and Narrative Chapter What Is to Be Explained, and How Comparative Levels of GDP Per Capita Booms, Busts, and Stagnation in Domestic Prosperity Other Indicators of Economic Prosperity From Evidence to Analysis Extensive Growth and Factor Accumulation Growth Theory and Australian Economic Historiography Recent Themes in Growth Economics 11 11 15 19 25 27 29 32 Chapter Origins: An Economy Built from Scratch? The Pre-1788 Economy of the Aborigines The Aboriginal Contribution to the Post-1788 Economy The Convict Economy and Its Peculiar Labor Market Further Features of the Economy Relevant to Later Prosperity British Subsidies and Australian Living Standards 37 38 42 44 50 53 Chapter Squatting, Colonial Autocracy, and Imperial Policies Why the Wool Industry Was So Efficient Evolution of Political Institutions: From Autocracy to Responsible Government The Labor Market: Ending Transportation, Preventing Coolie Immigration Thwarting the Squatters: Land Policies to 1847 Other Determinants of Early Colonial Prosperity The Argentine Road Not Taken 57 58 Chapter Becoming Very Rich The Economic Effects of Gold: Avoiding the Resource Curse Sustaining Economic Prosperity Following the Rushes 80 84 90 63 67 69 73 76 vi • Contents Consolidating Democracy and Resolving the Squatter-Selector Conflict Openness and Growth Rural Productivity and Its Sources 96 100 108 Chapter Depression, Drought, and Federation Explaining Relative Incomes Eating the Seed Corn? Boom, Bubble, and Bust: A Classic Debt Crisis Why Was Recovery So Slow? Comparison with Other Settler Economies Tropics, Crops, and Melanesians: Another Road Not Taken Economic Effects of Federation Accounting for the Loss of the “Top Spot” in Income Per Capita 113 113 116 119 Chapter A Succession of Negative Shocks Why Was the Economic Impact of World War I So Severe? Why No Return to Normalcy? Pursuing Rural Development—A Field of Dreams? Growth in Other Settler Economies Debt Crisis, Then Depression—Policy Responses and Constraints Imperial Economic Links—Declining Net Benefits Could the Post-1960 Mineral Boom Have Occurred Earlier? The Debate over Stagnant Living Standards 144 147 148 154 157 160 165 170 173 Chapter The Pacific War and the Second Golden Age Why the Pacific War Fostered Domestic Growth The Golden Age Was Not Uniquely Australian Export Growth, Factor Inflows, and the Korean War Wool Boom Macroeconomic Theory and Policies—What Role? Location Advantage: Asian Industrialization and Changing Trade Partners High Tide for Australian Industrialization Underinvestment in Human Capital? The Debate over Postwar Growth Performance 176 177 183 186 191 Chapter Shocks, Policy Shifts, and Another Long Boom Why Did the Postwar Economic Boom End? The Reemergence of a Booming Mining Sector Macroeconomic Management in the 1970s Economic Policy Shifts in the 1980s Reevaluations The Quarry Economy: The Return of Resources-Based Prosperity The Contribution of Economic Reforms to Productivity 210 212 215 217 219 224 228 235 www.ebook3000.com 125 132 135 139 193 196 199 205 Contents Sustaining Prosperity through Boom and Bubble—A Historical Perspective Chapter 10 Appendix The Shifting Bases of Prosperity Note on Statistics and Sources • vii 241 246 257 References 259 Index 277 www.ebook3000.com Figures Figure 2.1 Figure 2.2 Figure 2.3 Figure 2.4 Figure 4.1 Figure 5.1 Figure 5.2 Figure 5.3 Figure 6.1 Figure 6.2 Figure 6.3 Figure 6.4 Figure 7.1 Figure 7.2 Figure 7.3 Figure 7.4 Figure 8.1 Figure 8.2 Figure 8.3 Figure 8.4 Figure 8.5 Figure 9.1 Figure 9.2 Comparative GDP per capita, selected years, 1820 to 2008 Population increase per decade, 1790 to 2009 Growth rate of GDP per capita by period, 1850 to 2010 Distribution of top incomes, 1921 to 2003 Wool trade, 1822 to 1850 Mining shares of total employment and GDP, 1849 to 2009 Export and trade ratios, 1825 to 2009 Government debt as a percentage of GDP, 1854 to 1914 GDP per capita, 1889 to 1914 Foreign debt-servicing ratio, 1861 to 1983 Victoria: government revenue, expenditure, and deficit, 1890 to 1914 Growth indicators: Argentina, Australia, and Canada, 1890 to 1913 Alternative estimates of GDP per capita, 1914 to 1939 Government debt as a percentage of GDP, 1901 to 1962 Tariff protection, 1904 to 2005 Unemployment rate, 1901 to 2010 Manufacturing shares of total employment and GDP, 1891 to 2009 Immigration indicators, 1925 to 2007 Terms of trade, 1870 to 2009 Shares of total exports to Japan and the U.K., 1949 to 1989 Comparative education participation rates at ages 16 and 17, 1910 to 1971 Annual growth rate of GDP per capita, 1951 to 2010 Australia’s percentage of world “economic demonstrated resources” of major minerals, December 2008 12 17 19 22 59 91 101 106 114 122 129 130 145 151 153 162 181 187 189 195 202 212 230 268 • References Inklaar, Robert, Marcel P Timmer, and Bart van Ark 2007 “Mind the Gap! 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Oxford: Oxford University Press Kalix, Z., L M Fraser, and R I Rawson 1966 Australian Mineral Industry: Production and Trade, 1842–1964 Canberra: Commonwealth of Australia, Department of National Development, Bureau of Mineral Resources, Geology and Geophysics, Bulletin No 81 Kaspura, Andre, and Geoff Weldon 1980 “Productivity Trends in the Australian Economy 1900–01 to 1978–79.” Working Paper No 9, Research Branch, Department of Productivity, Canberra (August) Keating, M 1973 The Australian Workforce 1910–11 to 1960–61 Canberra: Department of Economic History, Research School of Social Sciences, Australian National University Keay, Ian 2000 “Canadian Manufacturers’ Relative Productivity Performance, 1907– 1990.” Canadian Journal of Economics, Vol 33, No (November), pp 1049–68 Kelley, Allen C 1965 “International Migration and Economic Growth: Australia, 1865– 1935.” Journal of Economic History, Vol 25, No (September), pp 333–54 ——— 1968 “Demographic Change and Economic Growth: Australia, 1861–1911.” Explorations in Entrepreneurial History, Vol 5, No (Spring/ Summer), pp 207–77 Kelly, Paul 1992 The End of Certainty: The Story of the 1980s St Leonards, NSW: Allen & Unwin Kenwood, A G., and A L Lougheed 1999 The Growth of the International Economy 1820–2000 London: Routledge (fourth edition) Kindleberger, Charles P 1986 The World in Depression, 1929–1939 Berkeley: University of California Press (revised edition) Kinsella, John (editor) 2009 The Penguin Anthology of Australian Poetry Camberwell, Vic.: Penguin La Croix, Sumner J 1992 “Property Rights and Institutional Change during Australia’s Gold Rush.” Explorations in Economic History, Vol 29, No (April), pp 204–27 Lamb, P N 1964 “Early Overseas Borrowing by the New South Wales Government.” Business Archives and History, Vol 4, No (February), pp 46–62 Landes, David S 1998 The Wealth and Poverty of Nations: Why Some Are So Rich and Some So Poor New York, NY: Norton www.ebook3000.com References • 269 Lehmann, 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Rodney Maddock and Ian W McLean (editors) New York: Cambridge University Press, pp 5–29 Matsuyama, Kiminori 1992 “Agricultural Productivity, Comparative Advantage, and Economic Growth.” Journal of Economic Theory, Vol 58, No (December), pp 317–34 May, Dawn 1994 Aboriginal Labour and the Cattle Industry: Queensland from White Settlement to the Present Melbourne: Cambridge University Press McCarty, J W 1964 “The Staple Approach in Australian Economic History.” Business Archives and History, Vol 4, No (February), pp 1–22 McInnis, R M 1986 “Output and Productivity in Canadian Agriculture, 1870–71 to 1926–27.” In Long-Term Factors in American Economic Growth, eds Stanley L Engerman and Robert E Gallman Chicago: University of Chicago Press, pp 737–78 McLean, I W 1968 “The Australian Balance of Payments on Current Account 1901 to 1964–65.” Australian Economic Papers, Vol (June), pp 77–90 ——— 1973a “The Adoption of Harvest Machinery in Victoria in the Late Nineteenth Century.” Australian 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Growth, Dani Rodrik (editor) Princeton, NJ: Princeton University Press, pp 23–52 McMichael, Philip 1984 Settlers and the Agrarian Question: Foundations of Capitalism in Colonial Australia Cambridge: Cambridge University Press McMinn, W G 1979 A Constitutional History of Australia Melbourne: Oxford University Press Mehlum, Halvor, Karl Moene, and Ragnar Torvik 2006 “Institutions and the Resource Curse.” Economic Journal, Vol 116 (January), pp 1–20 Meinig, D W 1962 On the Margins of the Good Earth: The South Australian Wheat Frontier 1869–1884 Chicago: Rand McNally Melbourne, A.C.V 1988a “New South Wales and Its Daughter Colonies, 1821–1850.” In Australia: The Cambridge History of the British Empire, Volume VII, Part I, Ernest Scott (editor) Cambridge: Cambridge University Press (first published 1933), pp 146–83 ——— 1988b “The Establishment of Responsible Government.” In Australia: The Cambridge History of the British Empire, Volume VII, Part I, Ernest Scott (editor) Cambridge: Cambridge 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population, 15, 38–39; traditional economic system, 39–42 ‘Accord’ agreements (1980s), 218 Adelaide, 74, 75, 179 agglomeration economies, 107 agriculture, 86, 98, 162; early colonial, 74–75; geographical limits of, 119, 154–156; government support in 1920s, 150, 154; impact of drought on, 126–27; innovations, 108– 111; Korean war boom in, 188–190; meat and dairy exporting, 126; mixed farming, 108, 126; productivity of, 108–112; research and education, 110-111, 203–204; staple exports of, 102–104 See also cattle industry and wool industry Argentina, 1, 7, 100, 106, 118, 142, 167, 168; crisis of 1890s in, 121, 128–32; incomes in relative to Australia, 125, 157, 246–47; growth of compared to Australia, 78, 97, 142, 159, 252 Asian economic crisis (1997), 228, 243 Australian Bureau of Statistics, 136 Australian Capital Territory (ACT), 240 Austria, 218 auto industry, 179, 196, 244 banks, 74; Bank of New South Wales, 52; Commonwealth Bank, 136; early colonial, 52; and crisis of 2008, 244; and 1890s crisis, 120–21, 127 See also Reserve Bank of Australia Ballarat, 88 Barings crisis, 121, 123, 129 Belgium, 12, 206 BHP (Broken Hill Propriety), 150 Blainey, Geoffrey, 135 booms (economic): after 1991, 228–31, 241–45; 1960s mining, 215–17; post-1945, 183–84, 186–91; pre-1890, 119–21 Botany Bay See Sydney Bourke, Richard, 71 Bretton Woods, 185, 213–14 Brigden report (1929), 152, 156 Brisbane, 132, 133, 177 Britain (or U.K.), 2, 7, 24, 50, 51, 69, 148, 175, 186, 204, 214, 240; agricultural labor productivity in, 111; economic links with Argentina, 128–29; economic links with Australia, 100–102, 104–5, 165–70, 193–94, 229; incomes in compared to Australia, 11–14, 55–56, 114–15; policies on colonial self-government, 63–67, 78; role in international economy, 145, 163; subsidies to New South Wales, 53–55; wool trade, 58, 61–62 British Columbia, 90 British Empire, 5–6, 165–70 See also imperialism Broken Hill, 94 Brookings Institution, 205 Brunei, 246 Butlin, Noel, 54–56, 83, 173 California, 13, 87, 90 Canada, 7, 24, 33, 38, 39, 66, 106, 118, 125, 147, 180; incomes in compared to Australia, 12–13, 142, 175, 205–6, 208, 240, 246–47; industrialization of, 157–59; productivity in, 111–12, 239; schooling indicators in, 201; staple industries of, 104, 158, 233–34 Cape York (in Queensland), 40 cattle industry, 44 China, 2, 38, 51, 184, 195, 213, 229 Chinese immigrant labor, 69 Clark, David, 166 Clark, Manning, 45 Clarke, Marcus, 46 coal mining, 75–76 Commissariat (NSW government store), 52 Common Agricultural Policy (in Europe), 169 Commonwealth Bureau of Census and Statistics See Australian Bureau of Statistics Commonwealth Conciliation and Arbitration Commission, 137 constitutions: colonial, 6; commonwealth (federal), 6, 135–36, 138 convicts: characteristics of, 45; comparison of with U.S slavery, 46, 48; convict labor system, 45–51, 60–61; end of system, 67–69; numbers of transported, 45 278 • Index copper, 229; mining, 75–76; reserves, 230 Cornish, Selwyn, 193 counterfactuals, 7–8; and economic reforms, 238; and 1890s crisis, 123; and federation, 138–139; and federation-era drought, 126–127; and gold rush, 95; and labor market regulation, 153; and resource discoveries, 170, 234–235; and secession of north Queensland, 135; and squatters, 77–79; and tariff protection, 152, 224–225 dairy industry, 102 Darwin, 177 Debt See foreign debt; government debt Denmark, 24, 206 depressions: of 1840s, 72–73; of 1890s, 6, 119–24; of 1930s, 144–46, 160–65 dot-com crash (2001), 228 Dowrick, Steve, 207, 208 drought, 125–27, 137, 148, 190, 239 Dutch disease, 85, 159 Easterlin paradox, 25 economic shocks, 6–7, 35, 147 economic well-being See living standards Edelstein, Michael, 167, 204 Education See human capital emancipists, 52, 60 Empire Settlement Scheme (1922), 154 Engerman, Stanley L., 76–78 engineers, supply of, 204 Eureka rebellion (1854), 88 Europe, 7, 27, 37, 44 European Common Market, 169 exchange rate, 243; of Argentine in 1890s, 130–31; in 1890s, 131; floating of (1983), 220 exports: composition of, 126, 198, 242, 244–45; market diversification, 193–96, 229, 242; in nineteenth century, 101–4; prices of, 188 See also staple exports Farrer, William, 109 Federal Reserve (U.S.), 218 federation (of Australian colonies, 1901), 124, 134, 135–39 First World War, 138, 144, 145, 176; economic effects of, 147–48, 168, 171; financing of and war debts from, 149–50 Fitzpatrick, Brian, 166 foreign debt: interwar, 160–61; in late nineteenth century, 120–21; after Second World War, 182 foreign investment, 82, 145, 242, 243; in late nineteenth century, 104–5, 121–23; after Second World War, 187 France, 14, 44, 204, 247 Friedman, Milton, 192 Future Fund, 256 Geelong, 94 General Agreement on Tariffs and Trade (GATT), 185 General Motors-Holden, 179 geography, 34, 239–40, 250–51 Germany, 14, 58, 127, 163, 166, 204, 205, 206, 213 Gerschenkron, Alexander, 207 Gipps, George, 72–73 global financial crisis (2008), 211, 228, 255 globalization, 105, 166–67, 198–99, 239 government debt, 182; after First World War, 149–50, 160–61; in late nineteenth century, 134–36, 120–21 gold: 1850s rush, 80–82, 84–90; 1890s boom in Western Australia, 124, 141; exports, 91, 102–3; output, 90, 141 gold standard, 145, 163, 164 Greene tariff (1921), 151, 178 Gregory effect, 85, 216–17 Grey, Lord, 68, 69 growth: convergence after Second World War, 206–8; cross-country regressions, 33–35, 207, 248; extensive and intensive, 27–29, 205 growth strategy, 7; change in after 1980s, 220–23; interwar, 156–57 growth theory, 3–4, 29–31, 32, 206–7 Gruen, Fred, 206 Haig, Bryan, 144 Harvester judgment (1907), 103, 137 happiness, measures of, 25 Higgins, Justice, 103 Hirst, John, 46, 65, 68 Hobart, 74 Hong Kong, 195, 229, 246 housing, quality of, 22 housing industry: in 1850s, 85, 86; in 1890s crash, 120, 121–22; during First World War, 148; after gold rush, 92–93 Hughes, Robert, 46 human capital, 199–204; comparative schooling rates, 116, 200–202, 240; of convicts, 47, 200; of immigrants, 106–7, 204 human development index (HDI), 23–24, 246 www.ebook3000.com Index • 279 Iceland, 206 immigration, 27, 31, 92–93, 222, 242; in early colonial period, 69; during gold rush, 86, 92; in late nineteenth century, 105–6 after Second World War, 186–87, 204, 255 imperialism, 35–36, 165–66 See also British Empire India, 2, 28, 38, 41, 42, 44, 51, 184, 195, 229 Indian immigrant labor, 69 Indonesia, 38, 44 inequality, 242; in incomes, 21; in wages, 228 inflation, 242; in First World War, 152; during gold rush, 86; during Korean War, 190; in 1970s and 1980s, 210–11, 217–18, 227 institutions, 2, 5–6, 249; adaptability of, 251–53; early colonial, 51–53; and postwar boom, 213 international economy, 18–19, 100, 250; during interwar period, 144–46, 148–49, 150, 162–63; postwar boom in, 187–88; problems in during 1970s, 212–14 International Monetary Fund (IMF), 131, 214 iron ore, 156, 170–72, 230; reserves of, 229, 235 Italy, 1, 163, 168 Japan, 1, 2, 7, 14, 38, 127, 163, 208, 209, 212, 213; Australia’s trade with, 172, 194–95, 198, 209, 214, 223, 229; incomes in compared to Australia, 205–6, 208; and Pacific War, 177–78 Kalgoorlie, 94 Keynesian economics, 163, 191–93, 219 See also macroeconomic policies Kimberley region (of Western Australia), 44 Korean War boom, in wool industry, 188–91, 193, 197, 209 labor force participation rates: comparative between gold rush and First World War, 114–15, 140; of convicts, 45; of females, 180, 228 labor market: Accord agreements (1980s), 218, 219; after federation, 137–38; and growth, 226; during 1920s, 152–54 See also convicts land policies: to 1847, 69–73; following gold rush, 96–100 See also squatting Lang, Jack, 161 Latin America, 41, 43, 44, 76–79, 89 League of Nations, 163 leisure, 22–23, 141, 174–75, 241 Lend Lease (or Mutual Aid), 181–82 life expectancy, 23–24, 174 literacy, 47, 200 living standards, 1; indicators of, 19–25; stagnation in (1890–1940), 173–75 Loan Council, 150 Luxembourg, 206, 246 Lyne Tariff (1908), 137 Macarthur, John, 51 macroeconomic policies: contribution to postwar boom, 191–93; during 1970s, in 1930s depression, 163–65; 217–19; during Second World War, 182–83 Maddison, Angus, 55–56 Malaysia, 229 manufacturing, 74, 242; decline in, 216–17; during First World War, 150–51 and natural resources, 157–60; in 1920s, 151–52, 156; during postwar boom, 196–99; in Second World War, 178–80; tariffs and productivity of, 221, 239 Maori, 39, 42 McKay Harvester factory, 103 meat industry, 103 Melanesian indentured labor, 132–35, 136 Melbourne, 74, 75, 85, 86, 88, 177, 251; postgold rush boom in, 93, 94–95, 120 Mexico, 38 mining, 156, 203–4, 235; contribution to exports, 229–30; and economic growth since 1990s, 228–35; expansion from 1960s, 215–17; share of world’s mineral reserves 229; early twentieth century hiatus in, 170–73 See also copper; Dutch disease; Gregory effect; gold; iron ore money, 52 Mt Isa, 94 Murray River (or Murray-Darling river system), 40, 61, 251 natural resources, 5, 26, 254–55; and Aboriginal economy, 41–42; and economic growth since 1990s, 229–35; resource curse, 6, 33–34, 250, 255 See also agriculture; mining Netherlands, 12, 14, 24, 206, 247 Nevada, 90 Newcastle (New South Wales), 150 New England (U.S.), 45 New South Wales, 68, 69, 90, 121, 136, 155, 160–61; British subsidy of, 53–55; convict economy of, 44–50; political developments in, 63–67, 71–73, 96; wool industry in, 58, 59 280 • Index New Zealand, 7, 23, 34, 38, 39, 118, 125, 142, 160, 204, 229, 233; Australian exports to, 198, 229; and federation, 124, 138–39; gold in, 92, 97; incomes in compared to Australia, 12–14, 139, 142, 205–6, 228, 246–47; productivity levels in, 234–35, 239, 240 Nicholas, Stephen, 46 Nguyen, Tom, 207, 208 Norfolk Island, 46 North West Shelf (Western Australia), 50, 235 Norway, 14, 28, 33, 117, 206, 240, 246, 256 oil price shocks, 214–15 Olympic Dam (South Australia), 50 Pakington, John, 68–69 Pacific Islander immigrant labor, 69 See also Melanesian indentured labor Papua New Guinea, 39–40, 178, 181, 198 Perth, 94 Peru, 38 Pilbara region (of Western Australia), 94, 235 Pitchford thesis, 221, 243 Playford, Thomas, 197 political developments: early colonial, 63–67, 72–73; responsible government, 82, 96 See also federation population, 147, 205, 210; age distribution of, 45, 92–93; compared to Argentina, 129; compared to the United States, 140; levels of, 15–18, 56, 80, 83; masculinity rate, 45, 115, 140; and policy objective, 154, 156, 186–87 Port Arthur (Tasmania), 46 Port Phillip District See Victoria Portugal, 247 Prados de la Escosura, Leandro, 56 Premiers’ Plan (1931), 164 productivity, 235–41; comparative, 111–12, 114–15, 236, 239–40; rural, 74–75, 108–12 Qatar, 246 Queensland, 44, 68, 73, 96, 155, 251; mining in, 94, 235; sugar industry in, 132–35, 136 Quiggin, John, 241 Rattigan, G.A., 221 railways, 92, 154, 158 Reserve Bank of Australia, 136, 218–19 resource depletion, 116–19 See also natural resources Riverina region (of New South Wales), 121 Russia, 46, 207 See also Soviet Union San Francisco, 90 scale economies, 107 Scullin tariff (1929), 179 Second World War, 138, 144, 150; economic impact of, 176–83; financing, 149, 182 services sector, 74 Sinclair, W.A., 154–55 Singapore, 14, 177, 195, 229, 246 Smith, Adam, 25 social indicators See living standards social norms, 137–38, 146–47, 203, 213, 252–53 Sokoloff, Kenneth L., 76–78 South Africa, 45, 147, 198 South America See Latin America South Australia, 73, 75–76, 155, 179, 197 South Korea, 1, 195, 229 Soviet Union, 46, 184 See also Russia Spain, 58, 168 squatter-selector conflict, 96–100 squatting, 60–63, 70–73, 77–79 stagflation, 210 staple exports: comparison with Canada, 104, 158, 233–34; following initial European settlement, 50–51; and nineteenth century growth, 101–4 steel industry, 150, 158, 172–73, 179, 198, 233 Sudan, 147 sugar industry, 132–35 Sweden, 204, 218 Switzerland, 12, 24, 247 Sydney, 39, 40, 41, 51, 59, 64, 65, 68, 70, 71, 75, 93, 95, 126, 251 Taiwan, 195, 229 tallow, 62 tariffs: after federation, 136–37; following gold rush, 92; interwar increases in 140, 151–52, 156, 178; reductions from 1970s, 220, 222; relationship with growth, 224–26; Tariff Board, 221 See also trade policy; Greene tariff; Lyne tariff; Scullin tariff Tasmania, 46, 67, 69, 73, 75, 155; British subsidy of, 54–55 technological change, in rural sector, 108–11 See also productivity terms of trade, 188, 237 Thailand, 229 www.ebook3000.com Index • 281 trade policy, 35; during interwar period, 169; after 1970s, 220–23, 254 See also tariffs unemployment, 127, 236; following 1973, 210, 219, 227; during 1930s depression, 161, 164; postwar rate of, 184 United Kingdom See Britain United States, 7, 24, 33, 38, 39, 46, 107, 118, 125, 143, 147, 162, 163, 166, 169, 177–78, 181–82, 194, 204; Australian exports to, 198, 229; and collapse of Bretton Woods arrangements, 213–14; comparative social indicators, 175; high school retention rates in, 201–3; incomes in compared to Australia, 11–14, 56, 114–16, 139-142, 205–6, 208, 246–47; industrialization of, 159, 233–34; mining in, 170–71; postwar macroeconomic policies, 192–93; productivity in, 111–12, 236, 238–40 urbanization, 197 Van Diemen’s Land See Tasmania Victoria, 73, 75, 76, 82, 138, 197; agriculture in, 111, 155; 1890s economic crisis in, 122–23, 128; gold rush in, 84–90; land policies of, 97; late nineteenth century boom in, 93, 120 Vietnam, 214 Volcker, Paul, 218 Waitangi, treaty of (1840), 42 Wakefield, Edward Gibbon, 71 Western Australia, 44, 73, 131, 155; convicts in, 67, 69; 1890s gold rush in, 90, 91, 94, 122, 124, 141, 170; iron ore mining in, 171–72, 235; natural gas in, 93, 235 whaling and sealing industry, 43 wheat industry, 102–4 White Australia policy, 136, 222 Whyalla (South Australia), 172, 179 wool industry, 43, 70; in early colonial period, 51, 57–63; decline during 1890s, 126; efficiency of, 58–63, 108–9; exports, 91, 101–2; Korean War boom, 188–90; subdivision of land holdings, 97–98 world economy See international economy Yorke Peninsula (South Australia), 75 THE PRINCETON ECONOMIC HISTORY OF THE WESTERN WORLD Joel Mokyr, Series Editor Growth in a Traditional Society: The French Countryside, 1450–1815, by Philip T Hoffman The Vanishing Irish: Households, Migration, and the Rural Economy in Ireland, 1850–1914, by Timothy W Guinnane Black 47 and Beyond: The Great Irish Famine in History, Economy, and Memory, by Cormac Ó Gráda The Great Divergence: China, Europe, and the Making of the Modern World Economy, by Kenneth Pomeranz The Big Problem of Small Change, by Thomas J Sargent and Franỗois R Velde Farm to Factory: A Reinterpretation of the Soviet Industrial Revolution, by Robert C Allen Quarter Notes and Bank Notes: The Economics of Music Composition in the Eighteenth and Nineteenth Centuries, by F M Scherer The Strictures of Inheritance: The Dutch Economy in the Nineteenth Century, by Jan Luiten van Zanden and Arthur van Riel Understanding the Process of Economic Change, by Douglass C North Feeding the World: An Economic History of Agriculture, 1800–2000, by Giovanni Federico Cultures Merging: A Historical and Economic Critique of Culture, by Eric L Jones The European Economy since 1945: Coordinated Capitalism and Beyond, by Barry Eichengreen War, Wine, and Taxes: The Political Economy of Anglo-French Trade, 1689–1900, by John V C Nye A Farewell to Alms: A Brief Economic History of the World, by Gregory Clark Power and Plenty: Trade, War, and the World Economy in the Second Millennium, by Ronald Findlay and Kevin O’Rourke Power over Peoples: Technology, Environments, and Western Imperialism, 1400 to the Present, by Daniel R Headrick Unsettled Account: The Evolution of Banking in the Industrialized World since 1800, by Richard S Grossman States of Credit: Size, Power, and the Development of European Polities, by David Stasavage Creating Wine: The Emergence of a World Industry, 1840–1914, by James Simpson The Evolution of a Nation: How Geography and Law Shaped the American States, by Daniel Berkowitz and Karen B Clay Distant Tyranny: Markets, Power, and Backwardness in Spain, 1650–1800, by Regina Grafe The Chosen Few: How Education Shaped Jewish History, 70–1492, by Maristella Botticini and Zvi Eckstein Why Australia Prospered: The Shifting Sources of Economic Growth, by Ian W McLean www.ebook3000.com .. .Why Australia Prospered THE PRINCETON ECONOMIC HISTORY OF THE WESTERN WORLD Joel Mokyr, Series Editor A list of titles in this series appears at the back of the book www.ebook3000.com Why Australia. .. Cataloging-in-Publication Data McLean, Ian W Why Australia prospered : the shifting sources of economic growth / Ian W McLean p cm — (The Princeton economic history of the Western world) Includes bibliographical... with modern economic growth is unfortunate Neither the Netherlands nor Australia achieved their high income levels as a result of industrialization in the narrow sense of the term And neither made