The origins of modern economic growth: Europe or Asia

IIn this article, the author proposes to consider the possibility of emergence of the modern economic growth not in England, as it is common in historical and economic literature, but in other regions of the world well before the British Industrial Revolution. Question of the origins of the modern economic growth is considered both from theoretical and practical viewpoints. As a definition of this process the author takes the one elaborated by the founder of the concept of «modern economic growth» S. Kuznets. The article attempts to show that modern economic growth might take place in the medieval China in the XI-XIII centuries. In order to identify the criteria distinguishing the traditional society from modern one, the works of W. Rostow, S. Kuznets and other authors who studied the problem are used. To prove the thesis the author analyzed the process of formation of elements of the modern economic system in China in the XI-XIII centuries. In particular, the causes of the growth of the efficiency of the agricultural sector, strengthening industry’s growth and the development of the monetary system is analyzed. Attention is paid to the technological foundations of industry; the impact of innovation is examined. Various concepts are outlined that reveal the reasons for the sharp rise in economic activity and explain the subsequent socio-economic decline.