Religion, Political Power, and Economic Growth with Jared Rubin
Nov 3, 2017
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Author and professor Jared Rubin explores why Western Europe became wealthier than the Middle East, focusing on the shift from religious to economic elite legitimacy in governance. He discusses the role of power, coercion, and institutional factors in shaping economic growth, highlighting key historical events like the Glorious Revolution and the emergence of the Dutch Republic.
Different groups granting legitimacy to the state influenced economic growth in different regions.
The printing press facilitated reforms in Europe but faced resistance in the Middle East.
Economic elites played a crucial role in driving investment and industrialization in Europe.
Secularization in governance and balanced power structures are vital for sustainable economic growth.
Deep dives
The Reversal of Fortunes Between Western Europe and the Middle East
Following the spread of Islam, the Middle East was economically and culturally ahead of Western Europe. However, Europe fell behind after the fall of the Roman Empire. By 1,200, the Middle East was still ahead. The book aims to explain what led to the Western Europe's economic rise and industrial revolution.
Factors Influencing Economic Development
Various explanations for economic development include culture, geography, relative prices, and institutions. Culture, like Protestant values, has been considered influential. Geography and institutions, such as legal and political systems, play a role in shaping economic outcomes. The book focuses on how institutions impact economic development.
Political Legitimacy and Coercion
Rulers maintain power through coercion and legitimacy. Coercion involves having more power than others. Legitimacy depends on the belief that the ruler has the right to rule. Political legitimacy is crucial for economic development and influences how rulers interact with various societal agents. Game theory is applied to analyze the bargaining dynamic.
The Role of Printing Press in Economic Development
The printing press sparked reforms in Europe, facilitating the spread of ideas like the Reformation. In Europe, the printing press led to political and religious changes, contributing to economic growth. In contrast, the Middle East, like the Ottoman Empire, resisted the printing press due to religious authorities' fear of losing control over knowledge dissemination.
Case Studies of Economic Development in Europe
Countries like England and the Dutch Republic experienced economic growth due to favorable political institutions and the influence of economic elites. In Northwestern Europe, the prominence of economic elites in ruling structures drove investment and industrialization. Spain stagnated economically due to strong religious influence and lack of parliamentary power.
Secularization and its Impact on Economic Development
The book highlights the importance of secularization in governance for economic development. Role of religion in politics and economic elites' influence on policy-making are crucial in shaping economic outcomes. Balanced power structures and decisions driven by economic interests often lead to sustainable economic growth.
Conclusion and Future Research
The episode concludes by emphasizing the nuanced relationship between religion, governance, and economic development. Understanding the dynamics of political legitimacy, coercion, and secularization is vital for analyzing historical economic growth patterns. Further research on the interplay between religious authority, political institutions, and economic elites can provide insights for future studies.
The book deals with the question of why Western Europe became wealthier than the Middle East after centuries of being poorer. The book is part game theoretic model of society, part historical narrative through the lens of that model.
The model considers two main factors: the state's power to coerce and its need for political legitimacy granted by elites. Importantly, different groups have been the ones to grant legitimacy to the state in different times and places. In the Muslim world, religious leaders primarily played this role, as they did in Europe prior to the Reformation.
After the Reformation, however, the power of the Catholic Church was much diminished in many parts of Europe. Rulers in places like England and the Dutch Republic turned to economic elites to grant them legitimacy. This gave the merchant and capitalist classes a seat at the bargaining table, setting the stage for the Industrial Revolution.
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