Histoire des Faits Économiques - Session 2

Introduction

• The document is study notes for a course on "Histoire des Faits Économiques" at the University of Paris Nanterre.
• The course is for first-year Licence Eco-gestion students.
• The notes cover "L'essor des États, la naissance des monnaies".
• Session 2, September 25, 2023

Summary of Previous Session

• Human beings collaborate and organize to produce, exchange, and consume.
• All human societies involve economics and economic history.
• Economic history examines various ways societies have utilized production and exchange methods for consumption and social activities.
• Coordination mechanisms are essential for any economy, including norms, usages, social structures (family, kinship systems), organizations (churches, associations, businesses), justification systems (myths, religions, ethics), and institutions.
• Institutions may encompass, but are not limited to, social structures and organizations.

Introduction: The Problem of Coordination

• Humans use numerous tools to coordinate, including (but not limited to) language, non-verbal communication, graphics, and writing.
• The challenge lies in applying these tools to practical tasks.
• Defining a goal, developing a strategy/path, and achieving the desired outcome at a reasonable cost are essential steps.
• Two primary coordination models are: authority/delegation (vertical) and negotiation/cooperation (horizontal).
• Institutions are a significant means of combining these principles.
• State and currency are two remarkably enduring examples.

The Emergence of the State: Authority and Sovereignty

• States initially emerged in Asia then spread globally.
• Emergence correlates with complex social structures that outlast individual rulers.
• States require: social division, division of labor, formal authority, and delineation of internal and external boundaries. (e.g., ethnic/racial, lifestyle, citizenship)
• These characteristics are crucial elements in the definition of a state.

The Emergence of the State: Authority and Sovereignty (continued)

• State formation depends on internal social divisions, and a division of labor
• Distinction between settled and nomadic people.
• Distinction between sacred and secular groups (e.g., priests and rulers in one category; workers and farmers in another)
• Institutions define the permanence of the group and are intertwined with its religious structures or belief system.
• States are defined by internal/external boundaries (e.g., self/others, civilized/barbaric, citizens/outsiders)

The Emergence of the State: Authority and Sovereignty (continued)

• A state requires a framework for ordering relations between members of society and the outside world
• This framework usually involves defining the internal and external boundaries of the state.
• The distinction between "us" and "them" is a fundamental aspect of state formation.
• This division is often based on factors such as race, ethnicity, or lifestyle.

The Emergence of the State: Authority and Sovereignty (continued)

• States are characterized by mechanisms for organizing societal relations.
• They handle internal conflicts and external threats through established structures.
• Determining who is inside vs. outside the state and the internal dynamics of the societal group are necessary for state formation.

The Birth of the State: Authority and Sovereignty (continued)

• The state determines how individuals relate to one another and the outside world.
• It often has systems and structures that govern relationships.
• The state maintains order and manages internal struggles while also handling external threats.

The Birth of the State: Authority and Sovereignty (continued)

• Defining what constitutes a state is complex, encompassing many elements
• A state is identifiable by structures that regulate societal relations, manage conflicts, and navigate external threats.
• Recognizing these elements is crucial for understanding the nature of a state.

The Emergence of the State: Authority and Sovereignty (continued)

• The state regulates how people interact with one another and beyond its borders
• These structures help govern societal connections, deal with internal disputes, and manage external threats
• The concept of 'us' versus 'them' is central to state formation
• State boundaries are crucial aspects for any state.

The Emergence of the State (continued)

• The concept of state (and its characteristics) is not static.
• The role of the state can change and interact with various elements of a society.

The Emergence of the State: Authority and Sovereignty (continued)

• The state is an ongoing entity constantly adapting to various external and internal factors within a society.

The Emergence of the State: Authority and Sovereignty(continued)

• States establish order, manage internal conflicts, and deal with external threats
• They delineate societal boundaries to structure social relations and manage disputes.
• Defining who is inside and outside the state and how individuals relate can be critical components of a state’s structure.
• Understanding these aspects is essential for grasping the nature of a state.

The Emergence of the State: Authority and Sovereignty (continued)

• States, initially formed in Asia, eventually developed independently in other areas.
• The formation of states has three notable consequences: the minimum social division is required for state formation; a division of labor arises from this minimum, and an explicit delineation between internal and external elements of the group is necessary
• The structure and specifics of these divisions can change depending on the society or culture.

The Emergence of the State: Authority and Sovereignty (continued)

• Distinctions between sedentary and nomadic peoples, the sacred versus the common, and different social classes often emerged earlier in state formations.

The Birth of the State: Authority and Sovereignty (continued)

• The state requires elements for proper governance and functioning; these elements are embedded in any state that exists.

The Birth of the State: Authority and Sovereignty(continued)

• States are built upon elements of shared identity, internal structures, and boundaries.
• This is crucial for understanding their nature.

The Emergence of the State: Authority and Sovereignty

• States require minimal forms of social division and division of labor.
• Early states often relied on distinguishing between internal and external groups, including fixed settlements versus mobility.
• The distinction between sacred and profane realms was also common in early states, influencing authority structures.

The Difficulties of Institutionalizing the State

• The development of states involves both authority and legitimacy
• Authority refers to the ability to direct and control, while legitimacy involves a group accepting a leader or institution's right to rule or govern.
• These two elements are often intertwined but not easily reconciled.
• Conflicts between these ideals can lead to struggles over power, internal disruption, and the broader evolution of the state itself.

The Difficulties of Institutionalizing the State (continued)

• States throughout history have struggled to reconcile authority and legitimacy
• This struggle affects the formation and stability of institutions and power dynamics within the state.

The Difficulties of Institutionalizing the State (continued)

• The intersection of authority and legitimacy is crucial and difficult to reconcile.

The Birth of the State: Authority and Sovereignty (continued)

• States use the idea of the "sacred" to link material and spiritual stability within a society.

The Role of the State: Conflict and Religion

• Religious conflicts have played a significant role in the development of states.
• Religious differences often lead to internal conflicts and external disputes between states.
• State-religion relations have been a persistent factor in shaping political structures and the evolution of states.

The State and European Religious Wars

• The religious wars in 16th and 17th-century Europe highlight the complex relationship between the state, religion, and its citizens.
• The concept of "Cujus regio, ejus religio" illustrates the principle that the ruler's religion would determine the religion of the region.
• This principle led to religious conflicts and reshaped European political landscapes.

The State and European Religious Wars (continued)

• The evolving relationship between the state, religion, and people shaped societal and political structures in Europe.
• Religious conflicts highlighted the complexity of this relationship.

The State and European Religious Wars (continued)

• Europe's 16th and 17th centuries saw significant shifts in state-religion relations, reflected in the evolving political situation.

The State And European Religious Wars (continued)

• The complex interplay between religion, the state, and citizens shaped political systems in Europe.

The Thirty Years' War and the Westphalian System

• The Thirty Years' War (1618-1648) was a major European religious conflict.
• The peace treaties that followed (Westphalia 1648) dramatically impacted the relationship between states and religion.

The Westphalian Revolution—1648

• The Thirty Years War highlighted how religious differences could destabilize states.
• The Westphalian system sought to regulate relationships between the state and religion to reduce conflict.

The Emergence of Modern States and the Difficulties of State Formation

• 17th-century developments reshaped the relationship between states and religion.

The Emergence of Modern States (continued)

• The evolving nature of states and religion had profound effects on political structures and societal relations.

The Birth of Modern Monetary Systems

• The origin of money predates the modern era; it progressed from ancient forms to contemporary methods.
• These developments shaped economic activity throughout history.

Early Forms of Currency

• Ancient forms of currency, like shells or precious metals, predated widespread coinage.

Development of Money as a Tool for Exchange

• Money evolved from a range of commodities to facilitate trade.

Development of Money as a Tool for Exchange (continued)

• The use of currency throughout history illustrates the value of money as a tool for exchange in societies.

Development of Money as a Tool for Exchange (continued)

• Early money enabled diverse transactions and facilitated trade within societies.

Modern Money: The Role of the State

• The role of the state in creating and managing currency has broadened.
• Modern monetary systems are more intricate and complex than earlier forms.

Ce quiz teste vos connaissances sur l'essor des États et la naissance des monnaies. Il est basé sur les notes d'étude pour les étudiants de Licence Eco-gestion à l'Université de Paris Nanterre. Préparez-vous à explorer les mécanismes de coordination dans les sociétés humaines.