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Introduction: The Methodology of Analysing the Institutions of the Achaean Federal State (Sympolity) Kapitel lesen Erstes Kapitel lesen

2020 | OriginalPaper | Buchkapitel

7. The Economic Institutions of the Achaean Federal State

verfasst von : Emmanouil M. L. Economou

Erschienen in: The Achaean Federation in Ancient Greece

Verlag: Springer International Publishing

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Abstract

This chapter analyses the economic institutions of the Achaean federal state. The Achaean federal state was based on principles of economic freedom, market-type institutions and monetary union among the member city-states, with a genuine currency. Property rights were protected by law through local and federal courts. This was highly beneficial for the development of commercial activity among the member city-states. This chapter further analyses a series of state economic policy issues such as how public revenues and expenses were settled as well as issues of the state budget, taxation and public debt management. Furthermore, it analyses the provision of federal public goods. These include the provision of defence and the operational cost of the Achaean federal armed forces, other public goods such as the federal courts, a road network, as well as those public goods under the discretionary supervision of the Achaean federal authorities and, generally, the issue of public goods and their positive externalities on the economy. The analysis also focuses on the other social groups: women, orphans, metics (foreigners) and slaves, finishing with the issue of the value-added of the political and economic institutions of the Achaean federal state as a critical reason for the success of the Achaean federal experiment.

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Vorheriges Kapitel The Political Institutions of the Achaean Sympolity
Nächstes Kapitel Further Key Issues Regarding the Achaean Sympolity
Fußnoten
1
These terms have been employed by, among others, Pauly (1973) and Musgrave (1998).
 
2
On this issue, see, among others, Polachek (1992, 1994, 1997), Oneal and Russett (1997, 1999), Caruso (2006, p. 53), Polachek and Seiglie (2007), Dumas (2011), Massoud and Magge (2012), Copeland (2014), Cortes and Montolio (2014), our work (Economou and Kyriazis 2016b), Kollias and Paleologou (2017) and the extensive further references therein.
 
3
For these developments, see Lyttkens (2006, 2013), Ober (2010, 2011) and our own, Economou and Kyriazis (2017, 2019b).
 
4
On these developments, see, among others, the significant work of Cohen (1973, 1992), Woolmer (2016), Economou and Kyriazis (2017, 2019a, b) and Bitros et al. (2020).
 
5
As supported by the French political philosopher of the Enlightenment, Montesquieu, among other things, the speedy dispensation of judgment and verdict forms the very foundation of effective justice.
 
6
For the development of market-type institutions during the Classical Period in Athens and other city-states, there is a recent vast bibliography with persuasive arguments (the so-called Formalist’s approach). See, for example, among others, Cohen (1992), Amemiya (2007), Bitros and Karayannis (2008, 2010, 2013), Kyriazis (2009), Burke (2010), Engen (2010), Halkos and Kyriazis (2010), Lyttkens (2010, 2013), Ober (2010, 2011, 2015), Mackil (2013, 2015), Economou et al. (2015), Economou and Kyriazis (2016a, 2017, 2019a), Harris (2016), Woolmer (2016) and Bitros et al. (2020). This approach revisits the older views of scholars such as Finley (1973, 1985) and Austin and Vidal Naquet (1977), who had argued that the Ancient Greek economy was ‘embedded’ and characterised by primitive and simple economic activities (the Substantivist’s approach). In fact, this debate (Formalists/Modernists vs Primitivists) goes back to the end of the nineteenth century with the so-called Bücher-Meyer controversy.
 
7
On this, see Harris (2016) and Woolmer (2016), in detail.
 
8
According to Cohen (1992, p. 31), at least 30 citizens were active in providing banking services in ancient Athens during the Classical Period.
 
9
For banking in Ptolemaic Egypt, see Manning (2003, 2007), von Reden (2010) and Economou and Kyriazis (2019a).
 
10
(IG. IX 12; Xen. Hell. 5.2.19; Scholten 2000, p. 110; Mackil 2013, p. 255, 302–303; Economou et al. 2015; Funke 2015).
 
11
Themistocles was the victor of the famous naval Battle of Salamis in 480.
 
14
There is always the possibility that future archaeological evidence may reveal Achaean federal coins of a higher value, such as an Achaean drachma.
 
15
Chalkoi, in plural, meaning ‘bronze’.
 
16
By doing this, as was the case in Athens, the private sector covered a need not covered by the official mint. One reason that the state did not issue bronze coins may have been that it did not have the capacity to do so (insufficient qualified personnel for the production of low-value coins) and that the cost incurred in relation to any seigniorage was deemed to be too high to make the production of bronze coins by the state mint worthwhile (Bitros et al. 2020).
 
17
She means, the coin types bearing the Megalopolitan (not federal) symbols.
 
18
We remind our readers that from 370 to 234, Megalopolis was the capital of the Arcadian Sympolity It was then incorporated into the Achaean Sympolity. For information on the Arcadian Sympolity, see Larsen (1973), Economou and Kyriazis (2015) and Nielsen (2015).
 
19
She means the Sympolity.
 
20
She means polity, political entity.
 
21
He means the Sympolity.
 
22
Op. cit. ftn. 21.
 
23
Op. cit. ftn. 21 and 22.
 
24
For example, it is very well-known from Thucydides’ History of the Peloponnesian War, that one major reason for this devastating war was the harsh economic/commercial competition between the economically powerful states of Athens and Corinth, the former being the leader of the so-called Delian League (a military alliance), and the latter belonging to the Peloponnesian League, a military alliance created as a ‘countermeasure’ to the Delian League, with Sparta as its leader. In modern terms, this antithesis was mirrored in the NATO vs. Warsaw Pact status quo during the Cold War Era (1945–1991).
 
25
The Athenian drachma was a currency of excellent craftsmanship, of high silver content, and of stable value for about two centuries during the Classical Period. During the Hellenistic Period that followed, the gold Macedonian tetradrachm (four drachmas) became the universal coin in the Balkans, the Mediterranean, the Middle East and India because of the conquests of Alexander the Great (see Manning 2003, 2007; von Reden 2010). However, during the Hellenistic Period, the Athenian drachma was still considered an important means of performing international transactions and a reliable currency to be used as a depository by city-states.
 
26
In 211, Aegina become a part of the Aetolian Sympolity and in the following year, in 210, part of the Hellenistic King Attalus of Pergamum’s domain. Finally, in 133, it came under Roman rule.
 
27
It must also be acknowledged that the Hellenistic kingdoms of the East were much larger in territorial extent—with some of it especially fertile, such as the Ptolemaic Kingdom’s Nile Valley—and had much larger public revenues, something that has been confirmed by historians such as Walbank (1993), Manning (2003, 2007) and van Reden (2010).
 
28
For liturgies, see, among others, Davies (1967, 1981) and for trierarchy, see Kaiser (2007), Τridimas (2013), Ober (2017) and Economou and Kyriazis (2017).
 
29
In Athens, these temples were known as the Treasuries of (goddess) Athena and of the Other Gods. At first, the Treasury of Athena and the Treasury of the Other Gods were separate funds. The former managed the treasures of the Parthenon, which had been established before democracy, whereas the latter, established in 434, handled the treasures of all the other temples in the city. The treasuries were merged into one in 406/5, separated in 384, and finally merged again in 346. They functioned as bankers to the state during peacetime and as lenders of last resort in periods of war. These treasuries were administered by magistrates called Tamiai. They were funded from the tributes of either devout Athenians or foreign residents who had lived in Athens for an extended period (either as metics or as foreign merchants). In addition, they raised funds from the payment of fines, from renting out public property allocated by the state, even from private donations and tributes paid by allies to the city of Athens, known as aparchai (Aristotle, Ath. Const. 47.1; Samons 2000, p. 35–38; Marcaccini 2015, p. 517). According to Blamire (2001, p. 108) and Rhodes (2005, p. 93), until 427, the Athenian state paid an interest rate of 6% on her borrowings by those temple-funds but from 426 on, only 1.2%. On these issues, see in detail our own recent detailed analysis, in Bitros et al. (2020).
 
30
See, among others, Kyriazis (2009), Halkos and Kyriazis (2010).
 
31
This means that a part of each city-states’ public revenues was applied to payments to the federal budget.
 
32
For further intertemporal historical evidence on social rebellions due to (unfair) tax measures, see Burg (2004).
 
33
We think that, among others, the seminal work of Mancur Olson (1965) provides some intertemporal explanations as to why coordination and collective action sometimes fails among a group of people or a society as a whole.
 
34
We extensively analyse this issue in Bitros et al. (2020).
 
35
As Solon did in Archaic Athens in 594 (van Wees 2013).
 
36
For this basic economic principle regarding public goods see the seminal works of Musgrave (1939, 1959), Samuelson (1954, 1955) and Olson (1965).
 
37
Fiscal Federalism is a subfield of public finance, which deals with the division of governmental functions and financial relations among different levels of government. This theory assumes that a federal system of government can be efficient and effective at solving problems governments face, such as macroeconomic stabilisation, fair distribution of income in the society as a whole, efficient and effective allocation of resources, and economic stability etc. According to Oates (1999), fiscal federalism is concerned with understanding which functions and instruments are best centralised and which are best placed in the sphere of decentralised levels of government. For an extensive analysis regarding the theoretical foundations on fiscal federalism, see the seminal works of Musgrave (1959) and Oates (1972). See also Pauly (1973), Rosen (1988), Ιnman and Rubinfield (1997), Rubinfield (1997), Oates (1998), and Musgrave (1998).
 
38
We borrow this term from the European Union’s glossary.
 
39
With this Athenian model of a fifth-century trireme in mind, where each warship was manned by a crew of 200 (Morrison et al. 2000), it follows that the six ships required 1200 men. That number must be added to the total manpower of the Sympolity’s military forces for the year 217.
 
40
On this issue, see also the recent and the older volumes of the academic Journal Networks and Spatial Economics published by Springer.
 
41
Further evidence on these as well as further issues which we study in the next subsection such as the existence of an efficient system of water supply and management would be welcomed. However, due to space limitations, this lies beyond the scope of this work.
 
42
Some primitive versions of such facilities are mentioned as early as the Trojan war period.
 
43
Gymnasiums were large public athletic facilities which consisted of multiple spaces with extensive sports installations. In Athens, there were three, the Academy, the Lyceum and the Kynosarges (Fisher 1998). The odeon was a building devoted to music: singing exercises, musical shows, poetry competitions, and the like.
 
48
Pankration was a mixed martial art, developed in Sparta.
 
49
In the city-state of Athens, a group of 10 policemen known as astynomoi were responsible for maintaining the city’s cleanliness and keeping order. They were assisted by 300 publicly owned Scythian slaves. They were responsible for maintaining the peace, crowd-control and assisting in dealing with criminals, making arrests and handling prisoners (Arist. Ath. Const. 50; Cox 2007). Regarding street cleanliness, there was a service, the koprologoi, financed by the state, whose duty was to collect garbage and animal faeces found in the streets throughout the twin cities of Athens–Piraeus and turn it into fertiliser for sale (Ault 2007). Aristotle (Ath. Const. 50) and the inscriptions IG XII 5, 107 and IG XII describe the provision of such a service even in smaller towns, as was the case on the islands of Paros and Thassos. Thus, there is no reason to believe that such a service did not exist (in general or at least, partially) in the city-states of the Achaean Sympolity.
 
50
There is a controversy here among the ancient authors and modern historians regarding whether their joining in 241 or sometime from 239 to 228, was voluntary or due to geopolitical reasons.
 
51
Regarding the political and socio-economic structure of Sparta see in detail Cartledge (1979, 1987, 2003) and Cartledge and Spawforth (2002).
 
52
This is implied by Polybius when he writes:
‘Nor is there any difference between the entire Peloponnesus and a single city, except in the fact that its inhabitants are not included within the same wall.’
Here Polybius does not specify the nature of ‘equality’ he refers on; either economic or equality in power-sharing among member states or both of them. He probably wanted to refer on both of them.
 
53
This is a timeless axiom that, as we have argued in Economou and Kyriazis (2019b), has been traced in a series of case studies such as Ancient Greece (Athens and the Aetolian Sympolity), the Old Swiss Confederacy, England, the United Provinces (the Dutch Republic), Great Britain, France, the USA, and the modern cases of Switzerland, Germany, the USA and the EU.
 
54
The relation of political stability and economic development/growth in a democratic regime is an intertemporal one and has been analysed by numerous and prominent scholars such as Lipset (1959, p. 56), Friedman (1961), Hayek (1973), von Mises (1981), Ozler and Rodrik (1992), Riker and Weimer (1993) and Alesina and Perroti (1996). For a recent review on this bibliography, see Georgiou, Kyriazis and Economou (2015) and Economou and Kyriazis (2019b, annex no. 2) and the references provided therein.
 
55
As mentioned in Footnote 64, for the meaning of path dependence, see the seminal work of David (1985) and Arthur (1989), but also Kyriazis (2006) and Kyriazis and Metaxas (2010), specifically in reference to the Athenian Democracy.
 
56
Federal states.
 
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Metadaten
Titel
The Economic Institutions of the Achaean Federal State
verfasst von
Emmanouil M. L. Economou
Copyright-Jahr
2020
Buch
The Achaean Federation in Ancient Greece

Print ISBN: 978-3-030-52696-2

Electronic ISBN: 978-3-030-52697-9

Copyright-Jahr: 2020

DOI
https://doi.org/10.1007/978-3-030-52697-9_7

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