Historical accounts of the making of the modern world emphasize the emergence of nation states. War and geopolitics feature prominently. Economic accounts emphasize the industrial revolution and economic growth. Economic growth is then related to business activity, the pursuit of economic returns, and technological change. The best-known attempt in political economy to bridge the two spheres relies on “institutions” as commitment devices. In that view, rulers can act as predators over economic agents and rules are needed to constrain predatory behavior. In this course we examine that view, and then explore additional elements that seem to have mattered: (i) modern states that become more powerful and coercive, not less; (ii) a private sector that thrives, often in connection to violent activities of the state; and (iii) an enhanced role for finance enabling complementary private and public activities. We construe the political process and the pursuit of profit as part of a symbiotic enterprise between rulers and economic agents. This should allow us to reconcile mainstream descriptions of the rise of capitalism with revisionist views, and to shed new light on phenomena that are either more distant in history (such as ancient state formation) or more recent, such as the pursuit of industrial policies.
Room Share with PHDBA 279PD.