Abstract
The present paper is concerned with isolating certain ecological conditions requisite for the development of capitalism defined as an activity pattern characterized by the acquisition of profit through exchange transactions.
In particular it is hypothesized that the emergence of capitalist activity will vary directly with the extent of competition for sustenance. Verification of this hypothesis is attempted by demonstrating that the rise of capitalist activity in western Europe was associated with such competition, whereas in China- where capitalism did not develop-agricultural conditions did not call forth such competition.
It is further hypothesized that a difference between western Europe and China in type of agricultural system accounts, in part, for variation between these two areas in the development of capitalist activity. The argument is developed that the practice of large scale irrigation agriculture is an inhibiting factor in the development of capitalist activity.
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