European Economic History
BCE: before the common era
CE: common era
AD: Ad Dominni
• Europe?
Before= mythological term
Now= political term
- Answering the question is political:
ex. Brexit ; president of European parliament holding EU flag next to Zelensky, Georgian
woman holding EU flag
- Europe = EU? :
Question isn’t always clear: “who do we call when we say Europe?” Henry Kissinger
(American diplomat)
Article in TEU: any European state...may apply to become a member of the union
: ex. application of Morocco in 1987 rejected, but Armenia, Türkiye and Ukraine do
satisfy the article to apply ->in the end = political decision
- Europe = The CoE ? (Council of the EU)
: an int. org. with the goal of upholding human rights, democracy and the rule of law in
Europe
(Article of the Statute of the CoE: any European state which satisfies article 3 can
become a member of the CoE -> today: 46 MS, Russia was included
- complex if we consider history: Roman Empire was also a part of the concept of Europe
• Economic
= connected with the trade, industry and development of wealth of a country, an area
or a society
->different perspectives: macro/microeconomic, industrial frameworks (laws,
regulations,..) , cultural influences, technological change
Book: “The Origins of Power, prosperity and poverty”
- They argue that one important explanation for the current differences in prosperity is
the political and economic systems that the European colonisers introduced, or chose to
retain, from the sixteenth century onwards
- Relationship between institutions and prosperity
->There’s also other ‘theories’ about the origins of property of states or people ex. geography/
cultural/ ignorance hypothesis
• Relevance of this class:
Ex. 1: Trump wants to take the Panama Canal
- Historical context of the Canal:
It was built by the US: crucial shipping route -> Colombia rejected the Canal treaty -> US
Rebellion which lead to the formation of the Republic of Panama -> US control of the canal for
decades
, - Treaties and changes in control:
Anti American sentiments rose in 1964-> negotiation for the treaties:
1977 Torrijos-Carter Treaties: permanent neutrality of the canal
1999: Panama took full control of the canal
- Trump currently
He made headlines by suggesting that Panama charges excessive fees for U.S. vessels passing
through the canal, asserting they face "exorbitant prices." + hinted potential use of military
force to reclaim the canal
He also accused Panama of allowing Chinese military personnel to control the canal, but the
claim lacks substantiation
- Historical Legacy and Responses
Panamanian president: "every square meter of the Panama Canal and its adjacent area belong
to PANAMA."
CHAPTER 2: CLASSIC ANTIQUITY
2.1 INTRODUCTION
Classic antiquity: Refers to period between 8th century BC and the 5th century
…
2.2 ANCIENT GREECE : SETTING THE SCENE
Ancient Greece
8th century BCE: formation of the Greek city-state (Polis) = are covering modern Greece and
beyond
->Loose collection of culturally and linguistically related city-states and communities
- Major city-states such as Athens and Sparta
- Greek settlements around the Mediterranean
- Impact of ‘geography’
- Agricultural society + trade (barter?)
->different govt. forums:
- ‘democracy’ (Athens)
- Oligarchy= power with small group of people (Sparta)
- Monarchy (early Greece)
Key moments
• The Classical period (c. 500 – 323 BCE)
Persian Wars:
- Persian expansion into Greek territories + Greek support for revolts against Persian rule.
= Series of conflicts between the Greek city-states and the Persian Empire
- ‘famous’ battles: ‘Battle of Marathon’ (490 BCE), ‘Battle of Salamis’ (480 BCE)
Greeks preserved their independence and halted Persian expansion into Europe, leading
to a period of cultural and political growth in Greece
,Peloponnesian war:
- Athens (Delian League) vs Sparta (Peloponnesian League):
Tension in Athens due to Persian war & Sparta challenges Athenian dominance
- Short term: End of Athenian dominance in Greece & short period of Spartan dominance
- Long term: Weakening of all Greek city-states, making them vulnerable to ‘Macedonian
conquest’
• The Conquests of Alexander the Great (336–323 BCE) & expansion of Greek culture across
the world during the Hellenistic Period
Macedonian conquest:
- Philip II of Macedon united Greek city-states under Macedonian rule (
->weakness of Greek city-states + advantage of new ‘military technologies’ (Macedonian
phalanx)
- After Philip’s assassination in 336 BCE, succeeded by his son, Alexander (‘the Great’)
->Defeated the Persians and expanded his empire from Greece to Egypt, Persia, and India
-> spread of Hellenistic culture + blend with Persian, Indian and oriental influences
- Died in 323 BCE; empire divided among his generals (‘diadochi’)
• Roman Conquest (146 BCE): Greece becomes part of the Roman Republic -> of Greek
political independence
2.3 ANCIENT GREEK ECONOMIC THOUGHT
Philosophy
- No separate ‘economic sciences’: economic problems were mainly discussed by philosophers
- Their discussions often centered on the search for the ‘good’
- Origin of the word ‘economy’: The Oeconomicus by Xenophon: a Socratic dialogue
principally about household management and agriculture
• Plato
= Aristotle’s teacher, he wrote dialogues with his teacher Socrates
In Politeia: ‘justice’ and the ‘ideal state’
- Strict hierarchical society with three classes: 1. Philosopher-Kings – 2. Guardians – 3.
Producers or workers
- Common education and exam after 30 years determines who is who
- “This makes society better” ->= qualitative
- Too much wealth is dangerous, because this leads to laziness and jealousy
-> no private property for the highest classes; sharing of the few items people possess
=‘Plato’s aristocratic communism’
In Nomoi (The laws): he refined his view of society;
- The two highest classes can have private property -> but land must be divided equally
- Even though he accepts that ownership can change, he argues that each piece of land
must allow its owner to survive
- Ideal population to maintain this system is 5,040 families
- State may intervene in the market, for example by regulating prices and profits, interest
must be prohibited, and accumulation of property must be prohibited
, • Aristotle
= student of Plato and teacher of Alexander The Great
-> His work is more inductive and empirical than Plato’s, less ‘romantic’
in Ethica Nicomachea : ‘oikonomia’ as the art of managing wealt
- Focus is primarily on the household and the efficient allocation of resources
-> he emphasizes wellbeing (quality) over the mere accumulation of wealth (quantity)
- he underscores the importance of equality, asserting that trade is only just if conducted
fairly
- Unlike Plato, who dismissed the role of money, Aristotle acknowledges its necessity for
the exchange of diverse goods.
In Politica: ‘the ideal state’
- Individual interest is subordinate to common interest: If everyone only pursues their own
interests, society will collapse into chaos. A well-functioning polis depends on citizens
working together for a shared purpose
->However, individual ownership should be allowed: if property is shared, people may
argue over how it should be used or distributed -> conflict
- Difference between ‘Oikonomia’ (Household Management) and Chrèmatistikè (Wealth
Acquisition):
➢ First: focuses on the management of resources for the well-being of the household vs
Second: Concerned with the accumulation of wealth for its own sake
➢ Prioritizes quality (well-being) over quantity (wealth accumulation)
➢ Trade is only fair if conducted with equality and justice.
➢ Accepts the role of money as a means of exchange but not as an end. It leads to
excessive greed and economic inequality. Asking interest is unnatural
2.4 THE ROMANS: SETTING THE SCENE
‘Rome’ or ‘Roman Empire’
- Founded as a small city-state, it became a vast ‘empire’.
- Influences politics, law, culture, and language, even today; ex. titkok trend ‘how often do
men think abt Roman Empire’
From myth to empire
Overall, 3 chronological periods:
1. The Roman Kingdom (753 BCE – 509 BCE):
• Mythical foundation:
➢ Aeneas, a Trojan prince (son of the goddess Venus), fled the destruction of Troy and
journeyed to Italy.
➢ His descendants, Romulus and Remus (son of Mars, god of war & Rhea Silvia, a Vestal
Virgin) were abandoned as infants and raised by the she-wolf
➢ As adults, they decided to build a city but argued over its location -> Romulus kills
Remus over the dispute and gives his name to the city -> becomes first king of Rome
➢ While the myths are legendary, archaeological evidence suggests that early
settlements in Rome existed as far back as the 10th century BCE.Ruled by the kings
BCE: before the common era
CE: common era
AD: Ad Dominni
• Europe?
Before= mythological term
Now= political term
- Answering the question is political:
ex. Brexit ; president of European parliament holding EU flag next to Zelensky, Georgian
woman holding EU flag
- Europe = EU? :
Question isn’t always clear: “who do we call when we say Europe?” Henry Kissinger
(American diplomat)
Article in TEU: any European state...may apply to become a member of the union
: ex. application of Morocco in 1987 rejected, but Armenia, Türkiye and Ukraine do
satisfy the article to apply ->in the end = political decision
- Europe = The CoE ? (Council of the EU)
: an int. org. with the goal of upholding human rights, democracy and the rule of law in
Europe
(Article of the Statute of the CoE: any European state which satisfies article 3 can
become a member of the CoE -> today: 46 MS, Russia was included
- complex if we consider history: Roman Empire was also a part of the concept of Europe
• Economic
= connected with the trade, industry and development of wealth of a country, an area
or a society
->different perspectives: macro/microeconomic, industrial frameworks (laws,
regulations,..) , cultural influences, technological change
Book: “The Origins of Power, prosperity and poverty”
- They argue that one important explanation for the current differences in prosperity is
the political and economic systems that the European colonisers introduced, or chose to
retain, from the sixteenth century onwards
- Relationship between institutions and prosperity
->There’s also other ‘theories’ about the origins of property of states or people ex. geography/
cultural/ ignorance hypothesis
• Relevance of this class:
Ex. 1: Trump wants to take the Panama Canal
- Historical context of the Canal:
It was built by the US: crucial shipping route -> Colombia rejected the Canal treaty -> US
Rebellion which lead to the formation of the Republic of Panama -> US control of the canal for
decades
, - Treaties and changes in control:
Anti American sentiments rose in 1964-> negotiation for the treaties:
1977 Torrijos-Carter Treaties: permanent neutrality of the canal
1999: Panama took full control of the canal
- Trump currently
He made headlines by suggesting that Panama charges excessive fees for U.S. vessels passing
through the canal, asserting they face "exorbitant prices." + hinted potential use of military
force to reclaim the canal
He also accused Panama of allowing Chinese military personnel to control the canal, but the
claim lacks substantiation
- Historical Legacy and Responses
Panamanian president: "every square meter of the Panama Canal and its adjacent area belong
to PANAMA."
CHAPTER 2: CLASSIC ANTIQUITY
2.1 INTRODUCTION
Classic antiquity: Refers to period between 8th century BC and the 5th century
…
2.2 ANCIENT GREECE : SETTING THE SCENE
Ancient Greece
8th century BCE: formation of the Greek city-state (Polis) = are covering modern Greece and
beyond
->Loose collection of culturally and linguistically related city-states and communities
- Major city-states such as Athens and Sparta
- Greek settlements around the Mediterranean
- Impact of ‘geography’
- Agricultural society + trade (barter?)
->different govt. forums:
- ‘democracy’ (Athens)
- Oligarchy= power with small group of people (Sparta)
- Monarchy (early Greece)
Key moments
• The Classical period (c. 500 – 323 BCE)
Persian Wars:
- Persian expansion into Greek territories + Greek support for revolts against Persian rule.
= Series of conflicts between the Greek city-states and the Persian Empire
- ‘famous’ battles: ‘Battle of Marathon’ (490 BCE), ‘Battle of Salamis’ (480 BCE)
Greeks preserved their independence and halted Persian expansion into Europe, leading
to a period of cultural and political growth in Greece
,Peloponnesian war:
- Athens (Delian League) vs Sparta (Peloponnesian League):
Tension in Athens due to Persian war & Sparta challenges Athenian dominance
- Short term: End of Athenian dominance in Greece & short period of Spartan dominance
- Long term: Weakening of all Greek city-states, making them vulnerable to ‘Macedonian
conquest’
• The Conquests of Alexander the Great (336–323 BCE) & expansion of Greek culture across
the world during the Hellenistic Period
Macedonian conquest:
- Philip II of Macedon united Greek city-states under Macedonian rule (
->weakness of Greek city-states + advantage of new ‘military technologies’ (Macedonian
phalanx)
- After Philip’s assassination in 336 BCE, succeeded by his son, Alexander (‘the Great’)
->Defeated the Persians and expanded his empire from Greece to Egypt, Persia, and India
-> spread of Hellenistic culture + blend with Persian, Indian and oriental influences
- Died in 323 BCE; empire divided among his generals (‘diadochi’)
• Roman Conquest (146 BCE): Greece becomes part of the Roman Republic -> of Greek
political independence
2.3 ANCIENT GREEK ECONOMIC THOUGHT
Philosophy
- No separate ‘economic sciences’: economic problems were mainly discussed by philosophers
- Their discussions often centered on the search for the ‘good’
- Origin of the word ‘economy’: The Oeconomicus by Xenophon: a Socratic dialogue
principally about household management and agriculture
• Plato
= Aristotle’s teacher, he wrote dialogues with his teacher Socrates
In Politeia: ‘justice’ and the ‘ideal state’
- Strict hierarchical society with three classes: 1. Philosopher-Kings – 2. Guardians – 3.
Producers or workers
- Common education and exam after 30 years determines who is who
- “This makes society better” ->= qualitative
- Too much wealth is dangerous, because this leads to laziness and jealousy
-> no private property for the highest classes; sharing of the few items people possess
=‘Plato’s aristocratic communism’
In Nomoi (The laws): he refined his view of society;
- The two highest classes can have private property -> but land must be divided equally
- Even though he accepts that ownership can change, he argues that each piece of land
must allow its owner to survive
- Ideal population to maintain this system is 5,040 families
- State may intervene in the market, for example by regulating prices and profits, interest
must be prohibited, and accumulation of property must be prohibited
, • Aristotle
= student of Plato and teacher of Alexander The Great
-> His work is more inductive and empirical than Plato’s, less ‘romantic’
in Ethica Nicomachea : ‘oikonomia’ as the art of managing wealt
- Focus is primarily on the household and the efficient allocation of resources
-> he emphasizes wellbeing (quality) over the mere accumulation of wealth (quantity)
- he underscores the importance of equality, asserting that trade is only just if conducted
fairly
- Unlike Plato, who dismissed the role of money, Aristotle acknowledges its necessity for
the exchange of diverse goods.
In Politica: ‘the ideal state’
- Individual interest is subordinate to common interest: If everyone only pursues their own
interests, society will collapse into chaos. A well-functioning polis depends on citizens
working together for a shared purpose
->However, individual ownership should be allowed: if property is shared, people may
argue over how it should be used or distributed -> conflict
- Difference between ‘Oikonomia’ (Household Management) and Chrèmatistikè (Wealth
Acquisition):
➢ First: focuses on the management of resources for the well-being of the household vs
Second: Concerned with the accumulation of wealth for its own sake
➢ Prioritizes quality (well-being) over quantity (wealth accumulation)
➢ Trade is only fair if conducted with equality and justice.
➢ Accepts the role of money as a means of exchange but not as an end. It leads to
excessive greed and economic inequality. Asking interest is unnatural
2.4 THE ROMANS: SETTING THE SCENE
‘Rome’ or ‘Roman Empire’
- Founded as a small city-state, it became a vast ‘empire’.
- Influences politics, law, culture, and language, even today; ex. titkok trend ‘how often do
men think abt Roman Empire’
From myth to empire
Overall, 3 chronological periods:
1. The Roman Kingdom (753 BCE – 509 BCE):
• Mythical foundation:
➢ Aeneas, a Trojan prince (son of the goddess Venus), fled the destruction of Troy and
journeyed to Italy.
➢ His descendants, Romulus and Remus (son of Mars, god of war & Rhea Silvia, a Vestal
Virgin) were abandoned as infants and raised by the she-wolf
➢ As adults, they decided to build a city but argued over its location -> Romulus kills
Remus over the dispute and gives his name to the city -> becomes first king of Rome
➢ While the myths are legendary, archaeological evidence suggests that early
settlements in Rome existed as far back as the 10th century BCE.Ruled by the kings
