Growing the Economy
Introduction
In 650 BC the world’s first currency (coins) is believed to have started in Lydia. Travel on the silk road, and growing trade, started around 202 BC. Other key dates include 1347 when one of the oldest commercial operations, Stora Kopparberg, began in Sweden. From 1400-1800 the Hanseatic League provided security to connected cities (largely replaced by the 1648 Treaty of Westphalia and establishment of nation states). The world’s oldest surviving bank stated in Italy in 1472. In 1602 the Dutch East India Company was established; the Hudson Bay Company in 1670. Key enabling events include the 1493 papal Inter Caetera “Discovery Doctrine” usurping indigenous land title. Other key events include the Industrial Revolution starting in the 1770s. Common regulations and approaches, such as AC electricity (1888), and international organizations (e.g., Rhine Commission in 1815, UN and Bretton Woods in 1944-45), expanded the global economy.
~ 650 BCE
First large scale use of currency (coins) in Lydia (now Turkey) – use of coins also developed separately in China, India and cities around the Aegean Sea.
202 BCE
Travel begins on the silk road.
1347
Stora Kopparberg, Sweden, oldest commercial corporation, receives Royal Charter.
1400–1800
Hanseatic League of cities, northern Europe, supported commerce and defense
Replaced largely by emergence of nations, e.g., Sweden, Denmark, Netherlands, UK, Germany.
1445
Portuguese Prince Henry the Navigator first establishment of trading posts for slavery in Africa. Prior to European colonization, Africa at its peak estimated to have up to 10,000 different states and autonomous groups with distinct languages and customs.
1472
Italy’s Banca Monte dei Paschi di Siena opens (oldest surviving bank).
1493
The papal Inter Caetera – the “Doctrine of Discovery”
1602
Dutch East India Company founded, leading to the world’s first stock exchange in Amsterdam (shares returned approx. 16 per cent p.a. 1602-1650).
1607
Founding of Jamestown VI, oldest of the original 13 colonies and key conduit for invasive species, e.g., dandelions, tobacco, earth worms, honey bees, purple loosetrife, common sparrow.
1609
Bank of Amsterdam established – thought to be the first modern central bank.
1637
Height of tulip mania.
Single bulbs sold for as much as ten-times annual salaries (generally recognized as first example of a ‘speculative bubble’).
1640
The first global convergence of the value of silver, standardizing the metal’s value.
1648
Treaty of Westphalia and the rise of modern system of states.
1670
Hudson Bay Company established (world’s largest landowner with 15 per cent of North America).
1700
The start of tea as a major commodity in England.
1776
Adam Smith, The Wealth of Nations published.
1770s–1830s
Launch of Industrial Revolution in Britain (textiles, steam power, iron).
Peak of transatlantic slavery with an average of some 78,000 enslaved people brought to the Americas each year.
1781
James Watt patents a steam engine.
1791
Le Chapelier Law abolishes guilds in France
1807
Steamship invented.
1815
Rhine Commission established – world’s oldest international organization.
1853
First international meteorological conference (Brussels).
1865
International Telegraph Union – first global regulatory agency.
1888
Nikola Tesla sells his patent for polyphase AC induction motor to George Westinghouse (Westinghouse and Tesla win bid, over Edison and DC power, to light World Expo in Chicago, 1893).
1896
Hamilton, ON and Buffalo, NY receive transmitted AC (hydro) electric power (from DeCew Falls and Niagara Falls respectively – ends the first ‘standards war’ in favour of AC transmission over DC).
1909
Canada-US Boundary Water Treaty, leads to International Joint Commission in 1912, and Niagara River Water Diversion Treaty 1950.
1925
General Motors and Standard Oil spokesmen claim in Public Health Service hearings there are no alternatives to leaded gasoline as an anti-knock additive (Scientific American reported in 1918 that alcohol-gasoline was ‘universally expected for anti-knock’).
1936
US Corps of Engineers initiates use of cost benefit analysis (e.g., Federal Navigation Act).
1944
Bretton Woods Conference, IMF and World Bank created (GDP becomes a standard metric for a country’s economy).
1945
United Nations established (replaces the League of Nations, starts with 45 nations).
1947
International Organization for Standardization (ISO) founded in Geneva (replaces the International Federation of the National Standardizing Association founded in 1926).
GATT formed.
1948
Organization for European Economic Cooperation (OEEC) created (mainly to administer the Marshall Plan) – reformed to Organization for Economic Cooperation and Development (OECD) in 1961.
1949
NATO established.
1955
First McDonald’s restaurant opens.
1956
First use of intermodal shipping on Ideal X (Newark to Houston), now about 17 million containers worldwide regulated by ISO 668 (dimensions) and ISO 6346 (labelling).
1957
European Economic Community (EEC) replaces the European Coal and Steel Community (1951).
Sputnik satellite launched.
1962
Launch of the first communications satellite.
1968
World Federation of Engineering Organizations (WFEO).
1971
OECD recommends ‘polluter pay principle’.
First email.
US abandons global gold standard.
1978
China reforms (opens) its economy.
1980
First GMO patent issued (a bacterium that digests crude oil – US Supreme Court rules to permit patenting of life forms).
1982
Internet protocol (TCP/IP) introduced as standard protocol on the ARPNET.
Latin America debt crises.
1991
India reforms (opens) its economy.
World Wide Web introduced.
1994
Amazon.com founded, first book sold 1995.
1995
World Trade Organization launched (replaces GATT which commenced 1948).
1998
Google launched.
2001
China joins WTO.
Enron scandal.
2003
First Skype connection.
2005
First video posted on YouTube.
2006
First tweet, “just setting up my twttr”.
2009
Elinor Ostrom receives Nobel Prize in Economics for her work on governance of the commons.
2013
Clothing factory collapses in Bangladesh killing at least 900.
2019
Facebook fined $5Bn by US FTC for mishandling user’s privacy.
2020
COVID-19 mRNA vaccine begins roll-out in Dec.
2021
COVID-19 global death toll exceeds 5.4 million, 4.6 Bn people vaccinated with 9.2 Bn doses (72% in high- and upper-income countries, 0.9% in low-income countries).
G7 agrees to 15% minimum corporate tax.
2024
UK becomes first G7 country to phase out coal-fired electricity.
2025
Global AI spending about $1.5 trillion