Culture is the key to understanding the process that led to the Industrial Revolution. This is the theme of Joel Mokyr’s book, “The Culture of Growth.” His message is that the Industrial Revolution took place in Europe. Since the Enlightenment, the continent had been a vast zone of exchange of ideas, scientific breakthroughs, and discourse sufficiently iconoclastic to help other philosophers, scientists, and economists think differently. Intellectual openness was the key, even if European states experienced strong tensions among themselves.
When the conditions were right, all these elements interacted, creating the conditions for the Industrial Revolution to blossom. Of course, there were geographical and technical conditions that influenced this spectacular movement, such as the availability of coal in the United Kingdom.
At the time of the European Industrial Revolution, the Middle Kingdom was at a level of development comparable to that of the United Kingdom. It could have followed a similar path. However, China would not experience the Industrial Revolution until much later. For Mokyr, the major difference between China and Europe is cultural diversity. China was characterized by a lower tolerance for diversity and disruption. The ferment of the Industrial Revolution was unable to develop there.
This cultural dynamic of Europe and the diversity of institutions have been at the heart of the long period of growth in which we are still present.
In financial markets, diversity is essential. The price of a financial asset reflects the expectations expressed. To support these inevitably heterogeneous expectations, the most comprehensive information possible is required.
The various stakeholders must be able to rely on reliable data, on a common foundation, a common history which gives coherence to the entire economic and financial system.
It is this shared history, these most diverse influences from the past, that will allow us to project ourselves into the future and understand the world of tomorrow. The process is analogous to that of the industrial revolution. We must pool our thoughts to create the conditions for a common dynamic.
The world is changing. Common goods, climate change, and the global economic development process are at stake.
To be able to plan ahead, we collectively need rich and reliable information over time. We also need to be able to express controversial opinions and think differently when necessary.
What is happening at the Smithsonian Institution, the Bureau of Labor Statistics, and even a major American investment bank does not reassure us. History and statistics cannot be appropriated, except at the risk of chaos.