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01 / 05
Lesson Plan: Hangzhou (Paper Money)

Blog Post | Human Development

Lesson Plan: Hangzhou (Paper Money)

In this lesson, students will learn about a commercial innovation that originated in China and has now spread all over the world: paper currency.

You can find a PDF of this lesson plan here.

Lesson Overview

Featured article: Centers Progress, Pt. 12: Hangzhou (Paper Money) by Chelsea Follett

Despite China having the second biggest economy in the world and being the nation with the world’s largest population today, many students know surprisingly little about the country’s history. Even students that know a bit about China have probably never heard of the city of Hangzhou, one of the ancient capitals of China and now its fourth-largest metropolitan area with a population of over 20 million.

This article will give students a glimpse into the fascinating history of Hangzhou during its “golden age” and relates many of the innovations that made the city one of the most influential centers of progress in world history. In particular, students will learn about one commercial innovation that originated in China and has now spread all over the world: paper currency.

Warm-up

Imagine that paper money, electronic payments, and credit and debit cards disappeared tomorrow. In this alternate reality, the only way to pay for things would be by using small metal coins.

How would this change affect you, your family, and your friends?

  • Take a few minutes to reflect on how life would be different if you could use only coins to make purchases.
    • How would you feel? Do you think the transition would be easy?
    • Do you think using only coins to pay for things would be an impossible task? What would be the biggest challenges for you and your family?
    • Would there be any advantages to this old style of payment?
  • Write a paragraph describing how this change would affect your life.
  • Share your paragraph with a partner. Reflect and discuss together:
    • In what ways would you and your community be worse off with only the use of coins?
    • Would you want to live this way for a day, a month, or even a year?
    • Do you think it is possible or desirable for your town or city to flourish without the use of paper money?
  • Today you will learn about the origin of paper money in China. Before we begin, answer these questions:
    • Why do you think paper money was invented in the first place? What were the advantages of paper money over the types of money used previously?
    • What technology do you think had to be developed in order for paper money to be introduced?
    • Make a prediction: Do you think paper money originated with a central government or as an innovation of private businesspeople?

Questions for reading, writing, and discussion

Read the article, and then answer the following questions:

  • What were some of the characteristics of the economy of Hangzhou during the Song dynasty? List at least three.
  • The article mentions two advantages of using paper currency over coins. What were these advantages?
  • What role does Hangzhou play in the economic life of China today? Why is it still one of the most important cities in China?
  • According to the article, at what point did Hangzhou become the most important city in China?
  • What critical piece of infrastructure first built during the 600s CE allowed Hangzhou to be connected to the cities of northern China?
  • What technological innovation allowed for the mass production of books, documents, and banknotes during the Song dynasty? Be specific. What was the critical invention devised by Bi Sheng?
  • Despite Hangzhou being forward-thinking in many respects, what notable practice now seen as inhumane and cruel towards a particular group arose during the Song Dynasty?
  • What were some of the cultural milestones of the Song dynasty in each area of achievement? How did these innovations improve the lives of many ordinary Chinese people living in cities like Hangzhou? Fill in the chart below.
What were the achievements during the Song dynasty?How were the lives of ordinary Chinese people improved as a result?
Culture (including clothing, literature and poetry, cuisine, and architecture)
Technology
Economics
  • How did paper currency evolve? Write a short description of its origin and development from the Tang dynasty through the Song dynasty.
  • What were some of the features of the banknotes printed by the Chinese central government in Hangzhou beginning in 1265 CE? Why did the Chinese people ascribe value to this form of currency?
  • If not managed correctly, what is one of the dangers of using paper currency in an economy? What are the consequences for ordinary people of this type of fiscal mismanagement?

Extension Activity/Homework

Watch and Learn from a China Scholar

Dr. Valerie Hansen teaches Chinese history at Yale University. She is a well-known expert on one of the most famous Chinese paintings, a masterpiece known as the “Qing Ming Scroll,” which was commissioned by a Song dynasty emperor. Although the cityscape depicted in the scroll is a fictional rendition of an “ideal” Chinese urban area during the Song dynasty, it provides extensive evidence of the technological sophistication and economic innovations that were present in Hangzhou at the time. Watch the video of Dr. Hansen describing the entire scroll in detail. As you watch, find specific evidence in the scroll that exemplifies Chinese society during the Song dynasty.

Examples in the Qingming Scroll
Social organization
Politics and governance
Interactions with the environment
Cultural developments
Economic systems
Technology

Create a Virtual Tour of Hangzhou

Imagine that you are a tour operator in the modern city of Hangzhou. Your job is to promote your area to foreign visitors. Create a virtual tour of modern Hangzhou city using Google Presentation or PowerPoint and present it to your potential clients. What types of places would you like to show visitors to the city? How would you make Hangzhou appealing to them?

Find information on popular tourist sites in Hangzhou, such as:

  • West Lake
  • The Grand Canal
  • Leifeng Pagoda
  • Lingyin Temple
  • Jingci Temple
  • Yue Fei Temple
  • Longjing Tea Farms
  • Xixi National Wetland Park
  • Qinghefang Ancient Street
  • Wuzhen Water Village

On a Google Presentation or PowerPoint, create a slide for each site you wish to include in your presentation. Include images of each site, its location on a map of Hangzhou, and its importance to the history of the city. Make your slideshow as interesting as possible to entice potential visitors to visit Hangzhou.

Blog Post | Science & Technology

AI Is a Great Equalizer That Will Change the World

A positive revolution from AI is already unfolding in the global East and South.

Summary: Concerns over potential negative impacts of AI have dominated headlines, particularly regarding its threat to employment. However, a closer examination reveals AI’s immense potential to revolutionize equal and high quality access to necessities such as education and healthcare, particularly in regions with limited access to resources. From India’s agricultural advancements to Kenya’s educational support, AI initiatives are already transforming lives and addressing societal needs.


The latest technology panic is over artificial intelligence (AI). The media is focused on the negatives of AI, making many assumptions about how AI will doom us all. One concern is that AI tools will replace workers and cause mass unemployment. This is likely overblown—although some jobs will be lost to AI, if history is any guide, new jobs will be created. Furthermore, AI’s ability to replace skilled labor is also one of its greatest potential benefits.

Think of all the regions of the world where children lack access to education, where schoolteachers are scarce and opportunities for adult learning are scant.

Think of the preventable diseases that are untreated due to a lack of information, the dearth of health care providers, and how many lives could be improved and saved by overcoming these challenges.

In many ways, AI will be a revolutionary equalizer for poorer countries where education and health care have historically faced many challenges. In fact, a positive revolution from AI is already unfolding in the global East and South.

Improving Equality through Education and Health Care

In India, agricultural technology startup Saagu Baagu is already improving lives. This initiative allows farmers to increase crop yield through AI-based solutions. A chatbot provides farmers with the information they need to farm more effectively (e.g., through mapping the maturity stages of their crops and testing soil so that AI can make recommendations on which fertilizers to use depending on the type of soil). Saagu Baagu has been successful in the trial region and is now being expanded. This AI initiative is likely to revolutionize agriculture globally.

Combining large language models with speech-recognition software is helping Indian farmers in other ways. For example, Indian global impact initiative Karya is working on helping rural Indians, who speak many different languages, to overcome language barriers. Karya is collecting data on tuberculosis, which is a mostly curable and preventable disease that kills roughly 200,000 Indians every year. By collecting voice recordings of 10 different dialects of Kannada, an AI speech model is being trained to communicate with local people. Tuberculosis carries much stigma in India, so people are often reluctant to ask for help. AI will allow Indians to reduce the spread of the disease and give them access to reliable information.

In Kenya, where students are leading in AI use, the technology is aiding the spread of information by allowing pupils to ask a chatbot questions about their homework.

Throughout the world, there are many challenges pertaining to health care, including increasing costs and staff shortages. As developed economies now have rapidly growing elderly populations and shrinking workforces, the problem is set to worsen. In Japan, AI is helping with the aging population issue, where a shortage of care workers is remedied by using robots to patrol care homes to monitor patients and alert care workers when something is wrong. These bots use AI to detect abnormalities, assist in infection countermeasures by disinfecting commonly touched places, provide conversation, and carry people from wheelchairs to beds and bathing areas, which means less physical exertion and fewer injuries for staff members.

In Brazil, researchers used AI models capable of predicting HER2 subtype breast cancer in imaging scans of 311 women and the patients’ response to treatment. In addition, AI can also help make health resource allocations more efficient and support tasks such as preparing for public health crises, such as pandemics. At the individual level, the use of this technology in wearables, such as smartwatches, can encourage patient adherence to treatments, help prevent illnesses, and collect data more frequently.

Biometric data gathered from wearable devices could also be a game-changer. This technology can detect cancers early, monitor infectious diseases and general health issues, and give patients more agency over their health where access to health care is limited or expensive.

Education and health care in the West could also benefit from AI. In the United States, text synthesis machines could help to address the lack of teachers in K–12 education and the inaccessibility of health care for low-income people.

Predicting the Future

AI is already playing a role in helping humanity tackle natural disasters (e.g., by predicting how many earthquake aftershocks will strike and their strength). These models, which have been trained on large data sets of seismic events, have been found to estimate the number of aftershocks better than conventional (non-AI) models do.

Forecasting models can also help to predict other natural disasters like severe storms, floods, hurricanes, and wildfires. Machine learning uses algorithms to reduce the time required to make forecasts and increase model accuracy, which again is superior to the non-AI models that are used for this purpose. These improvements could have a massive impact on people in poor countries, who currently lack access to reliable forecasts and tend to be employed in agriculture, which is highly dependent on the weather.

A Case for Optimism

Much of the fear regarding AI in the West concerns the rapid speed at which it is being implemented, but for many countries, this speed is a boon.

Take the mobile phone. In 2000, only 4 percent of people in developing countries had access to mobile phones. By 2015, 94 percent of the population had such access, including in sub-Saharan Africa.

The benefits were enormous, as billions gained access to online banking, educational opportunities, and more reliable communication. One study found that almost 1 in 10 Kenyan families living in extreme poverty were able to lift their incomes above the poverty line by using the banking app M-Pesa. In rural Peru, household consumption rose by 11 percent with access to phones, while extreme poverty fell 5.4 percent. Some 24 percent of people in developing countries now use the mobile internet for educational purposes, compared with only 12 percent in the richest countries. In lower-income countries, access to mobile phones and apps is life-changing.

AI, which only requires access to a mobile phone to use, is likely to spread even faster in the countries that need the technology the most.

This is what we should be talking about: not a technology panic but a technology revolution for greater equality in well-being.

Brookings | Financial Market Development

Women’s Financial Inclusion Boosted in Sub-Saharan Africa

“In the 10 years leading up to 2021, the share of women in sub-Saharan Africa who owned a financial account more than doubled to reach 49%, according to data from the Global Findex.

Since 2017 alone, account ownership rates for women in the region increased 12 percentage points, driven entirely by increased adoption of mobile money accounts.”

From Brookings.

Blog Post | Adoption of Technology

Bitcoin Brought Electricity to Countries in the Global South

It won’t be the United Nations or rich philanthropists that electrifies Africa.

Summary: Energy is indispensable for societal progress and well-being, yet many regions, particularly in the Global South, lack reliable electricity access. Traditional approaches to electrification, often reliant on charity or government aid, have struggled to address these issues effectively. However, a unique solution is emerging through bitcoin mining, where miners leverage excess energy to power their operations. This approach bypasses traditional barriers to energy access, offering a decentralized and financially sustainable solution.


Energy is life. For the world and its inhabitants to live better lives—freer, richer, safer, nicer, and more comfortable lives—the world needs more energy, not less. There are no rich, low-energy countries and no poor, high-energy countries.

“Energy is the only universal currency; it is necessary for getting anything done,” in Canadian-Czech energy theorist Vaclav Smil’s iconic words.

In an October 2023 report for the Alliance for Responsible Citizenship on how to bring electricity to the world’s poorest 800 million people, Robert Bryce, author of A Question of Power: Electricity and the Wealth of Nations, sums it as follows:

Electricity matters because it is the ultimate poverty killer. No matter where you look, as electricity use has increased, so has economic growth. Having electricity does not guarantee wealth. But its absence almost always means poverty. Indeed, electricity and economic growth go hand in hand.

To supply electricity on demand to many of those people, especially in the Global South, grids need to be built in the first place and then have enough extra capacity to ramp up production when needed. That requires overbuilding, which is expensive and wasteful, and the many consumers of the Global South are poor.

Adding to the trouble are the abysmal formal institutions of property rights and rule of law in many African countries, and the layout of the land becomes familiar: corruption and fickle property rights make foreign, long-term investments basically impossible; poor populations mean that local purchasing power is low and usually not worth the investment risk.

What’s left are slow-moving charity and bureaucratic government development aid, both of which suffer from terrible incentives, lack of ownership, and running into their own sort of self-serving corruption.

In “Stranded,” a long-read for Bitcoin Magazine, Human Rights Foundation’s Alex Gladstein accounted for his journey into the mushrooming electricity grids of sub-Saharan Africa: “Africa remains largely unable to harness these natural resources for its economic growth. A river might run through it, but human development in the region has been painfully reliant on charity or expensive foreign borrowing.”

Stable supply of electricity requires overbuilding; overbuilding requires stable property rights and rich enough consumers over which to spread out the costs and financially recoup the investment over time. Such conditions are rare. Thus, the electricity-generating capacity won’t be built in the first place, and most of Africa becomes dark when the sun sets.

Gladstein reports that a small hydro plant in the foothills of Mount Mulanje in Malawi, even though it was built and financed by the Scottish government, still supplies exorbitantly expensive electricity—around 90 cents per kilowatt hour—with most of its electricity-generating capacity going to waste.

What if there were an electricity user, a consumer-of-last-resort, that could scoop up any excess electricity and disengage at a moment’s notice if the population needed that power for lights and heating and cooking? A consumer that could co-locate with the power plants and thus avoid having to build out miles of transmission lines.

With that kind of support consumer—guaranteeing revenue by swallowing any excess generation, even before any local homes have been connected—the financial viability of the power plants could make the construction actually happen. It pays for itself right off the bat, regardless of transmissions or the disposable income of nearby consumers.

If so, we could bootstrap an electricity grid in the poorest areas of the world where neither capitalism nor central planning, neither charity worker nor industrialist, has managed to go. That consumer of last resort could accelerate electrification of the world’s poorest and monetize their energy resilience. That’s what Gladstein went to Africa to investigate the bourgeoning industry of bitcoin miners electrifying the continent.

Bitcoin Saves the World: Energy-Poverty Edition

Africa is used to large enterprises digging for minerals. The bitcoin miners springing forth all over the continent are different. They don’t need to move massive amounts of land and soil and don’t pollute nearby rivers. They operate by running machines that guess large numbers, which is the cryptographic method that secures bitcoin and confirms its transaction blocks. All they need to operate is electricity and an internet connection.

By co-locating and building with electricity generation, bitcoin miners remove some major obstacles to bringing power to the world’s poorest billion. In the rural area of Malawi that Gladstein visited, there was nowhere to offload the expensive hydro power and no financing to connect more households or build transmission lines to faraway urban areas: “The excess electricity couldn’t be sold, so the power stations built machines that existed solely to suck up the unused power.”

Bitcoin miners are in a globally competitive race to unlock patches of unused energy everywhere, so in came Gridless, an off-grid bitcoin miner with facilities in Kenya and Malawi. Any excess power generation in these regions is now comfortably eaten up by the company’s onsite mining machines—the utility company receiving its profit share straight in a bitcoin wallet of its own control, no banks or governments blocking or delaying international payments, and no surprise government currency devaluations undercutting its purchasing power.

No aid, no government, no charity; just profit-seeking bitcoiners trying to soak up underused energy. Gladstein observes:

One night during my visit to Bondo, Carl asked me to pause as the sunset was fading, to look at the hills around us: the lights were all turning on, all across the foothills of Mt. Mulanje. It was a powerful sight to see, and staggering to think that Bitcoin is helping to make it happen as it converts wasted energy into human progress. . . .

Bitcoin is often framed by critics as a waste of energy. But in Bondo, like in so many other places around the world, it becomes blazingly clear that if you aren’t mining Bitcoin, you are wasting energy. What was once a pitfall is now an opportunity.

For decades, our central-planning mindset had us “help” the Global South by directing resources there—building things we thought Africans needed, sending money to (mostly) corrupt leaders in the hopes that schools be built or economic growth be kick-started. We squandered billions in goodhearted nongovernmental organization projects.

Even for an astute and serious energy commentator as Bryce, not once in his 40-page report on how to electrify the Global South did it occur to him that bitcoin miners—the very people who are turning the lights on for the poorest in the world—could play a crucial role in achieving that.

It’s so counterintuitive and yet, once you see it, so obvious. In the end, says Gladstein, it won’t be the United Nations or rich philanthropists that electrifies Africa “but an open-source software network, with no known inventor, and controlled by no company or government.”