The Great Divergence

The Great Divergence refers to the period, starting in the late 18th century, when Western Europe and parts of North America began to experience rapid economic growth and industrialization, outpacing the economies of Asia and other regions. This divergence in wealth and technological advancement led to significant differences in living standards and social structures. Factors contributing to this include access to colonial resources, innovations in technology and production, and political institutions that fostered economic freedom and entrepreneurship. Understanding this divergence helps explain modern global inequalities and the economic landscape we see today.