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Summary European Economic History Module 1

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This is a summary of Module 1 of the class European Economic History thought at the VUB. Covering: - the introduction to the course - defining "European" - the growth of the European Union - the Canada case study - the council of Europe - Why nations fail: the origins of power, prosperity, and poverty - Institutions theory - Geography theory - Cultural theory - Ignorance theory - political institutions - economic institutions - the effects of past policy on the economy current day - why you should study history - the Panama Canal saga - Current events - comments from the Trump administration - A historical introduction about the canal

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April 9, 2025
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Written in
2024/2025
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2024-2025




EUROPEAN ECONOMIC HISTORY
MODULE 1: SETTING THE SCENE


KH

, Dates:

AD – “Anno Domini” – Year of the Lord/Birthyear of Jesus Christ

BC – “Before Christ” – Dates before the birthyear of Jesus Christ

CE – “Common Era”

BCE – “Before the Common Era”

Aim of the course:
- Being able to understand and describe the main events in the history of Europe and the
European Union (EU)
- Being able to understand and describe the main events in the European Integration
- Being able to analyse the main historical event in their role in creating or destroying the
wealth of nations
- Being able to reflect and explain the determinants of economic development of countries
- Being able to analyse mechanisms that have influenced the transformation of the
European economy
- Being able to evaluate and develop an argumentation on the formation of the European
Union and its current architecture while drawing on important past events, trends, and
economic conditions.


Setting the scene: ‘European’ ‘Economic’ ‘History’
Covered in the course is ‘capita selecta’ / selected chapters (or events in our case) for bachelor
year 1 of Business Economics:


Defining ‘European’:
When asked the question, what is European you’ll often get very diQerent answers. Is ‘European’
defined geologically? Is ‘European’ defined culturally? Is ‘European’ a way of life? Is ‘European’
the European Union? Especially in today’s day and age with arising conflicts, the current
economic recession, shifting political landscapes and an ongoing immigration crisis, opinions
are very diQerentiated on whether people want to be identified as ‘European’.
(examples: Brexit, Ukraine to join the EU?, Georgia…)

A famous quote from a famous American diplomat and secretary of state:

“Who do I call if I want to speak to Europe?” – Henry Kissinger1

Pointing out that the EU lacked/lacks a single diplomatic authority to represent itself. It is still up
to the member states individually to make decisions.


Growth of the EU:
1957: Belgium, The Netherlands, Luxembourg, France, Italy, and Germany
1973: Denmark, Ireland, and the United Kingdom
1981: Greece


1
Note that Kissinger never definitively claimed the quote.


1

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