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Few events in the history of humanity rival the Industrial Revolution. After its start in eighteenth-century Britain, its unstoppable momentum brought sweeping changes in agriculture, manufacturing, transportation, and technology throughout Europe, North America, and eventually much of the world—with profound effects on socioeconomic and cultural conditions. In this thought-provoking account, Douglas W.
Allen shows how the Industrial Revolution was augmented by an institutional revolution that allowed for the full exploitation of the many new technological innovations. Fundamental to this shift in institutions, or the rules that govern society, were significant improvements in the ability to measure performance—whether of government officials, laborers, or naval officers. The result was a reduction of the role of nature and the hazards of variance in daily affairs.
Along the way, Allen provides readers with a fascinating explanation of the critical roles played by seemingly bizarre institutions, from dueling to the purchase of one's rank in the British Army. Engagingly written, The Institutional Revolution traces the dramatic shift from premodern institutions based on patronage, purchase, and personal ties toward modern institutions based on standardization, merit, and wage labor—a shift that was crucial to the explosive economic growth of the Industrial Revolution.