What does the Ancient Greek economy have to say about the current debt crisis? Josiah Ober shares his thoughts

Ober jacketJosiah Ober, author of The Rise and Fall of Classical Greece, has conducted groundbreaking research into the ancient Greek economy, showing that contrary to popular opinion, democracy and economic growth went hand in hand. But are today’s Greeks the “trained and knowledgeable democratic citizens” who built and supported the institutions that served as the foundation for Greek civilization? Ober says now is the time to stop pointing fingers and to think very seriously about the link between democracy and long-term economic stability. He recently discussed Ancient Greece’s answer to the financial crisis in The Daily Beast:

Ancient Greece’s Answer to the Financial Crisis

Greece’s real deficit? Knowledgeable citizens and accountable institutions.

The Greek debt crisis is playing out as if, as Henry Ford said, history is bunk. But if we look to history, we immediately see that the stakes are much higher and the problems are much deeper than either the current Greek leadership or the current EU leadership is willing to admit.

Just before the Greek people went to the polls to decide their future by voting in a miserably mismanaged referendum, George Katrougalos, Greece’s deputy minister for administrative reforms, announced that “The whole question has moved now from the field of economics to the field of democracy.” Meanwhile, the EU leaders, who apparently regard the Union as little more than an accounting device, seem incapable of thinking about the geo-strategic long term. But, like the United States of America, the EU is more than an accounting device. A democratic federation is an attempted solution to the problem of conjoining democracy, prosperity, and security in a dangerous, mutable world. America’s Founders knew that. Europe’s technocrats seem not to.

Read the rest here.

An excerpt from the book ran on PBS’s Making $ense blog yesterday, and Stanford ran a terrific feature on Ober’s research. His work has been cited in recent days by in Washington Post, Quartz, and New York Times articles that look to the Greek past to understand the current debt crisis.

Recently, Ober took the time to talk with us about his book and the reasons for Greece’s flourishing. You can read that interview here.

An interview with Josiah Ober, author of The Rise and Fall of Classical Greece

The period considered classical Greece (roughly the 4th through 5th century BC) had a profound effect on Western civilization, forming the foundations of politics and philosophy, as well as artistic and scientific thought. Why did Greece experience such economic and cultural growth—and why was it limited to this 200-year period? Josiah Ober, Professor of Political Science and Classics at Stanford University and author of The Rise and Fall of Classical Greece, took the time to explain the reasons behind Greece’s flourishing, and what its economic rise and political fall can tell us about our own world.

The Rise and Fall of Classical GreeceWhat was the rise of classical Greece and when and why did it happen?

JO: Basically, sustained economic growth lead to the rise of Ancient Greek civilization.

At the Early Iron Age nadir, in ca. 1000 BCE, the Greek world was sparsely populated and consumption rates hovered near subsistence. Some 650 years later, in the age of Aristotle, the population of the Greek world had increased at least twenty-fold. During that same period, per capita consumption probably doubled.

That rate of growth is far short of modern rates, but it equals the growth rate of the two standout societies of early modern Europe: Holland and England in the 16th to 18th centuries. Historians had long thought that the Greek world was impoverished and its economy overall static – which of course made Greek culture (art, philosophy, drama, and so on) seem that much more “miraculous.” But, thanks to the recent availability and quantification of a huge mass of data, drawn from both documentary and archaeological sources, we can now trace the amazing growth of the Greek economy, both in its extent (how many people, how much urbanization, and so on), and in terms of per capita consumption (how well people lived).

So the rise of the Greek world was predicated on sustained economic growth, but why did the Greek economy grow so robustly for so long?

JO: In the 12th century BCE, the palace-centered civilization of Bronze Age Greece collapsed, utterly destroying political and social hierarchies. Surviving Greeks lived in tiny communities, where no one was rich or very powerful. As Greece slowly recovered, some communities rejected attempts by local elites to install themselves as rulers. Instead, ordinary men established fair rules (fair, that is, for themselves) and governed themselves collectively, as political equals. Women and slaves were, of course, a very different story. But because these emerging citizen-centered states often out-competed elite-dominated rivals, militarily and economically, citizenship proved to be adaptive. Because participatory citizenship was not scalable, Greek states stayed small as they became increasingly democratic. Under conditions of increasingly fair rules, individuals and states rationally invested in human capital, leading to increased specialization and exchange. The spread of fair rules and a shared culture across an expanding Greek world of independent city-states drove down transaction costs. Meanwhile competition encouraged continuous institutional and technological innovation. The result was 700+ years of of world-class efflorescence, marked by exceptional demographic and per capita growth, and by immensely influential ideas, literature, art, and science. But, unlike the more familiar story of ancient empires, no one was in running the show: Greece remained a decentralized ecology of small states.

So what about the fall?

JO: There are two “falls” – one political and one economic. The economic fall is the decline of the Greek economy from its very high level in the age of Aristotle to a “premodern Greek normal” of low population and near-subsistence consumption levels with the disintegration of the Roman empire. That low normal had pertained before the rise of the city-state ecology. After the fall, it persisted until the 20th century. But we also need to explain an earlier political fall. Why, just when the ancient Greek economy was nearing its peak, were Philip II and Alexander (“the Great”) of Macedon able to conquer the Greek world? And then there is another puzzle: Why were so many Greek city-states able to maintain independence and flourishing economies in the face of Macedonian hegemony? The city-states were overtaken by the Macedonians in part because human-capital investments created a class of skilled and mobile experts in state finance and military organization. Hired Greek experts provided Philip and Alexander with the technical skills they needed to build a world-class army. But meanwhile, deep investments by city-states in infrastructure and training made fortified cities expensive to besiege. As a result, after the Macedonian conquest, royal taxes on Greek cities were negotiated rather than simply imposed. That ensured enough independence for the Greek cities to sustain economic growth until the Roman conquest.

What does the economic rise and political fall of classical Greece have to tell us about our own world?

JO: The new data allows us to test the robustness of contemporary theories of political and economic development. In the classical Greek world, political development was a primary driver of economic growth; democracy appears to be a cause rather than simply an effect of prosperity. The steep rise and long duration of the city-state ecology offers a challenge to neo-Hobbesian centralization theories of state formation, which hold that advanced economic and political development requires the consolidation of centralized state power. The comparatively low rate of ancient Greek income inequality, along with the high rate of economic growth, suggests that the negative correlation of sustained growth with extreme inequality, observed in some recent societies, is not a unique product of modernity. Finally, the history of the ancient Greek world can be read as a cautionary tale about the unanticipated consequences of growth and human capital investment: It reveals how innovative institutions and technologies, originally developed in the open-access, fair-rules context of democratic states, can be borrowed by ambitious autocrats and redeployed to further their own, non-democratic purposes.

How did you get interested in the topic of rise and fall – was it just a matter of “Edward Gibbon envy”?

JO: Gibbon is amazing, as a prose stylist and historian. But the origin of my project actually goes back to a quip by a senior colleague at the very beginning of my career: “The puzzle is not why the Greek world fell, it is why it lasted more than 20 minutes.” Twenty-five years ago (and fifteen years after my colleague’s quip), the historical sociologist W.G. Runciman claimed that classical Greece was “doomed to extinction” because the Greek city-states were, “without exception, far too democratic.” True enough: the classical Greek world eventually went extinct. But then, so did all other ancient societies, democratic or otherwise. The Greek city-state culture lasted for the better part of a millennium; much longer than most ancient empires. I’ve long felt that I owed my colleague a solution to his puzzle. This book is an attempt to pay that debt.

Josiah Ober is the Mitsotakis Professor of Political Science and Classics at Stanford University. His books include Democracy and Knowledge, Political Dissent in Democratic Athens, The Athenian Revolution, and Mass and Elite in Democratic Athens (all Princeton). He lives in Palo Alto, California.


Peter Brown Receives Honorable Mention for the 2013 Cundill Prize

Peter Brown – Through the Eye of a Needle: Wealth, the Fall of Rome, and the Making of Christianity in the West, 350-550 AD
Honorable Mention for the 2013 Cundill Prize in Historical Literature, McGill University

“The Cundill Prize in Historical Literature at McGill is the world’s most important international nonfiction historical literature prize.”

Six books have moved on to the shortlist; the winner will be announced on November 20th in Toronto. Peter Brown’s book did not make the shortlist, but was recognized by the jury with an honorable mention (one of only two books so honored).

For more information about this award and event, click here.

Through the Eye of the Needle

 Through the Eye of a Needle is a sweeping intellectual and social history of the vexing problem of wealth in Christianity in the waning days of the Roman Empire, written by the world’s foremost scholar of late antiquity.

Peter Brown examines the rise of the church through the lens of money and the challenges it posed to an institution that espoused the virtue of poverty and called avarice the root of all evil. Drawing on the writings of major Christian thinkers such as Augustine, Ambrose, and Jerome, Brown examines the controversies and changing attitudes toward money caused by the influx of new wealth into church coffers, and describes the spectacular acts of divestment by rich donors and their growing influence in an empire beset with crisis. He shows how the use of wealth for the care of the poor competed with older forms of philanthropy deeply rooted in the Roman world, and sheds light on the ordinary people who gave away their money in hopes of treasure in heaven.

Through the Eye of a Needle challenges the widely held notion that Christianity’s growing wealth sapped Rome of its ability to resist the barbarian invasions, and offers a fresh perspective on the social history of the church in late antiquity.

Peter Brown is the Philip and Beulah Rollins Professor of History Emeritus at Princeton University. His many books include The World of Late Antiquity, The Rise of Western Christendom, and Augustine of Hippo.

New Ancient World Catalog!

Be among the first to check out our new ancient world catalog! http://press.princeton.edu/catalogs/ancient13.pdf

Of particular interest are some of our new and forthcoming titles including Peter Brown’s masterpiece, Through the Eye of a Needle: Wealth, the Fall of Rome, and the Making of Christianity in the West, 350-550 AD, and Marcus Tullius Cicero’s entertaining common sense guide, How to Run a Country: An Ancient Guide for Modern Leaders selected, translated, and with an introduction by Philip Freeman. Sara Forsdyke offers a fascinating new perspective in Slaves Tell Tales: And Other Episodes in the Politics of Popular Culture and Ancient Greece, Peter S. Wells challenges existing views in How Ancient Europeans Saw the World: Vision, Patterns, and the Shaping of the Mind in Prehistoric Times, and Ian Morris resolves some of the biggest debates in global history in The Measure of Civilization: How Social Development Decides the Fate of Nations.

Also, be sure to revisit the winner of the 2012 Charles J. Goodwin Award of Merit from the American Philological Association, Aesopic Conversations: Popular Tradition, Cultural Dialogue, and the Invention of Greek Prose, by Leslie Kurke.

If you’re interested in hearing more about our ancient world titles, sign up with ease here: http://press.princeton.edu/subscribe/ Your email address will remain confidential!

We’ll see everyone at the meeting of the Archaeological Institute of America and the American Philological Association January 3-6 in Seattle, WA. Come visit us at booth 108!